What is Small Employers' Relief?

All employers can reclaim some, if not all of the statutory parental payments paid to employees.

If you're eligible for SER you can reclaim 103% of statutory parental payments paid. Otherwise, you can reclaim 92%.

Your software calculates at 92% by default. To calculate at 103%, you must enable SER.

Who qualifies?

Your company qualifies for SER if the total of your employer and employee liability for national insurance (NI) contributions was £45,000 or less in the last complete tax year prior to the employee's qualifying week, or in the case of adoption, the matching week.

• For babies due between 22 July 2022 and 20 July 2023 - Check the liability for 2021/22
• For babies due from 21 July 2023 - Check the liability for 2022/23

 NOTE: If you weren't an employer for some or all of the tax year prior to the employee's qualifying week, you must check your SER status with HMRC. 

Check HMRC guidance now >

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. Click Payroll, click Change Process Date.
2. Enter a date in the relevant year, for example enter 05/04/2022 for the 21/22 tax year then click OK.
3. Click Reports, click Year End then double-click the relevant year.
4. Select Form P32 - Employer Payment Record then click Preview.
5. In the Tax Month boxes, enter 1 and 12, click OK then click 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.