Running a small business comes with its own set of challenges, especially when it comes to managing payroll. We are here to help you with three straightforward tips to manage maternity and paternity pay, keeping things legal and your team happy.
Know the rules
There are clear rules about Statutory Maternity Pay (SMP) and Statutory Paternity Pay (SPP). As a business owner, it is your job to know these rules inside out. Generally, SMP is paid for up to 39 weeks, and SPP is for one or two weeks. Make sure you know who can get this pay and how much they should get, and always keep this information up to date.
Keep clear records
It is important to keep clear records of when someone takes maternity or paternity leave and how much you paid them. This will help you stay transparent and will be useful if HM Revenue & Customs (HMRC) ever need to check your records.
Be supportive and communicative
Make sure you talk openly with your team members who are taking maternity or paternity leave and support them during this time. Let them know your company’s policies and be there to answer any questions they might have.
Managing maternity and paternity pay doesn’t have to be hard. By following these simple steps and understanding the rules, keeping clear records, and being a supportive employer, you can make the process smooth for everyone involved.