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What is Small Employers' Relief?

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This guide explains what Small Employers' Relief (SER) in Sage 50 Payroll.


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. 

How to claim in your software

It's really easy to enable SER in your software. Find out how to reclaim small employers relief >


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