What is Small Employers' Relief (SER)?

Find out about SER and how to check your eligibility in Sage 50 Payroll.

All employers can reclaim some, if not all statutory parental payments they pay to employees.

If you're eligible for SER, you can reclaim 108.5% of statutory parental payments you pay to employees. If you're not eligible, you can reclaim 92%.

 NOTE: The SER compensation rate increased to 108.5% from 6 April 2025. Prior to this, it was 103%. 

Your software calculates at 92% by default. To calculate at 108.5%, enable SER.

Who qualifies?

Eligibility is based on the total of your employer and employee National Insurance (NI) liability in a set period.

You qualify if total NI contributions were £45,000 or less in the last complete tax year, before the employee's qualifying week. Or in the case of adoption, the matching week.

• For babies due between 22 July 2024 and 20 July 2025 - Check the liability for 2023/24
• For babies due from 21 July 2025 - Check the liability for 2024/25

 NOTE: If you weren't an employer for any part of the relevant tax year, contact HMRC to check your SER status.

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Check if your company qualifies for SER

To check your liability for NI contributions was £45,000 or less, run the P32 report for the relevant year:

1. Select Payroll, Change Process Date.
2. Enter a date in the relevant year, for example enter 05/04/2025 for the 2024/25 tax year, then select OK.
3. Select Reports, then Year End then double-click the relevant year.
4. Select Form P32 - Employer Payment Record then Preview.
5. In the Tax Month boxes, enter 1 and 12, select OK then OK.
6. Make a note of the amount for 4 - Gross National Insurance.

If this amount is £45,000 or less, you qualify for small employers' relief. 

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