SMP

Discussion in 'Accounts & Finance' started by Jaydee, Jul 8, 2009.

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  1. Jaydee

    Jaydee UKBF Enthusiast Free Member

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    If a lady works for two employers, who both pay her enough to allow SMP to be paid, what happens when she takes her leave?

    Do both employers have to pay SMP and, if so, does she receive 2 x the weekly rate once her "90% of wage" period has ended?
     
    Posted: Jul 8, 2009 By: Jaydee Member since: May 27, 2007
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  2. Zarah

    Zarah UKBF Newcomer Free Member

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    Should you contact an accountant or something?
     
    Posted: Jul 8, 2009 By: Zarah Member since: Jul 7, 2009
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  3. Jaydee

    Jaydee UKBF Enthusiast Free Member

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    Unfortunately, I do not have an accountant, and I wondered if any kind UKBF souls had met this scenario before.
     
    Posted: Jul 8, 2009 By: Jaydee Member since: May 27, 2007
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  4. dlp

    dlp UKBF Newcomer Free Member

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    I'm not sure if an employee can receive SMP twice but it seems possible, I suggest you call the HMRC Employers helpline 08457 143 143
     
    Posted: Jul 8, 2009 By: dlp Member since: Jun 13, 2009
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  5. Wild Goose

    Wild Goose UKBF Newcomer Free Member

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    Agreed that's one for the helpline, and best ask for a call reference number at the end of the phone advice - it'll quite likely get kicked up to supervisor level btw, because it's not a run of the mill situation.

    Beyond the 90% period, expect her to have to select the principal employer to make the statutory payments - anything else would not make sense (because two lots of goverment-funded statutory pay would be illogical - if you stretched that to its limits, someone with 4 mini-employments would otherwise qualify for 4 x statutory pay. Unlikely!).
     
    Posted: Jul 8, 2009 By: Wild Goose Member since: Aug 15, 2008
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  6. Tom McClelland

    Tom McClelland UKBF Ace Full Member

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    An interesting one.

    The same thing could apply to SSP.

    Supposing someone works 3 days a week for one employee and 3 days a week for another. Then they go on long term sick. Once they've served their 3 waiting days with each employer (which takes a week) they're then entitled to £79.15/week from each employer.

    I can say that there is nothing in the computer specification for SMP or SSP which precludes the doubled up statutory payment.

    But HMRC told me when I raised a query about a different anomaly in the specifications that where regulations conflict with the computer specifications (that they supply) regulations still take precedence. So someone needs to check the regs.

    Thing is, the employer calculates SSP and SMP, and an employer might not know that an employee had another job elsewhere. They might guess because of the taxcode, but guessing isn't knowing.
     
    Last edited: Jul 8, 2009
    Posted: Jul 8, 2009 By: Tom McClelland Member since: Feb 10, 2008
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  7. Jaydee

    Jaydee UKBF Enthusiast Free Member

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    The xperthr website quotes:

    "If the employee has two or more jobs with different employers, then the general rule is that each employer must work out national insurance contributions on the earnings that it pays the employee and should ignore the payments made to the employee in her other job. This means that if the employee works for two different employers that are not carrying on business in association with each other, she will be eligible to receive SMP from each employer, subject to fulfilment in each case of the SMP qualifying conditions."

    So it does indeed seem that a multiply employed woman receives multiple SMP - how odd.

    However, I would rather have found the answer on an hmrc site, as I have no idea how accurate xperthr are, but as Tom said, it does follow that neither employer need know that they are not the only employer.

    An opportunity for some clever tax planning methinks, for a wife of a company owner, that is hoping to fall pregnant!
     
    Posted: Jul 8, 2009 By: Jaydee Member since: May 27, 2007
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