Can I pay an employee her statutory maternity pay in one lump sum? Do I need her consent?Posted in : First Tuesday Q&A NI on 3 April 2017
Employers may, on occasion, be faced with the issue of whether to pay an employee her statutory maternity pay (SMP) in a lump sum. This might be where, for instance, the employee is leaving employment or where she is being made redundant but has already qualified for statutory maternity pay.
Employers can pay SMP in one lump sum providing that the rules relating to the payment of National Insurance contributions are adhered to. However, payment of SMP in this manner is generally not advisable because both the employer and the employee could end up paying more in NI contributions than if
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