hello, if a director wants to take a paternity leave, is this paid in the same way as for a regular employee? The director is company's employee (the only employee), he takes a regular wage of £900 per month (so pays NIC), can he then have a statutory paternity payof £140.98 per week (or 90% of average weekly earnings, whichever is lower)? Thank you, Ellie
Hi Ellie
An interesting one.
Is the Director contractually paid? Care (re minimum wage aspects). I would suspect as a sole Director/only employee that he is not.
Also - is the Director intending to completely abandon ALL work for his business during his paternity leave jollie? If he is doing NO WORK at all, and the answer to the above is yes, then yes. But more likely he will be keeping his business running, unless its so successful that he doesnt need to, and so the answer is no. Its supposed to be a recompense from time off work, not being paid because his wife happened to have a baby.
Cynic (what moi?!!) - when did he up his wage to £900pm? Or has it been that for a couple of years?
HTH
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
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The director has actually stopped working for 2 weeks when the baby was born in May. He has been earning £900 for the past 9 months. He is contractually paid by his company - has had a payslip showing £900 every month for the past 9 months and paying National Insurance contributions.
The director has actually stopped working for 2 weeks when the baby was born in May. He has been earning £900 for the past 9 months. He is contractually paid by his company - has had a payslip showing £900 every month for the past 9 months and paying National Insurance contributions.
So he has a written contract?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Ah, therein lies the problem then Im afraid. Its one of those where most Directors dont want to enter into a written contract due to then having to then be paid minimum wage and for statutory holidays etc, but the downside as they see it is such things as paternity leave. The cynic I mentioned was thinking he might have set the payments as soon as the wife knew she was preggars. Certainly an area open to scrutiny by our pals at HMRC.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
isn't it 9 months by the end of 15th week before the expected week of childbirth? if so, then setting up payments once they found out she was pregnant wouldn't help, would it?
isn't it 9 months by the end of 15th week before the expected week of childbirth? if so, then setting up payments once they found out she was pregnant wouldn't help, would it?
We were just having a giggle.
Although, it's worked continuously for at least 26 weeks by the end of the 15the week/earnings min £113paw gross in the 8 relevant period.
But its a no to the pay without the written contract given his position. or it's the freebie John mentions that turns into a big payback to HMRC.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
The rules for SPP for Directors are the same as the rules for SMP for Directors that I detailed in Tatiana's thread in the VAT/PAYE etc forum.
From the information you have given & my interpretation of the following I would say that yes, he is entitled to SPP but I am not an employment lawyer.
