SPM231100 | Penalties - employer fraudulently or negligently makes an incorrect statutory payment

Where an employer fraudulently or negligently makes an incorrect statutory payment they are liable to a penalty.

The penalty for making an incorrect payment of:

• SSP, SMP, SAP, ShPP or SNCP is a sum not exceeding £3,000.

• SPP and SPBP is a sum not exceeding £300

Sections 12(3) and 12(4) of the Employment Act 2002(EA2002)

Articles 13(3) and 13(4) of the Employment (Northern Ireland) Order 2002 (E(NI)O2002)

Section 9 of the National Insurance and Statutory Payments Act 2004 (NICs & SPA 2004)

Section 10 of the National Insurance and Statutory Payments Act 2004 (NICs & SPA 2004)

The offence is committed once the incorrect payment is made. This can be an over or under-payment.

The penalty for making incorrect payments is a maximum of £3,000 for each SSP, SMP, SAP, ShPP or SNCP offence and £300 for each SPP and SPBP offence.

The penalty is based on the total amount of incorrect payments made and how often the offence has been committed.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000).

If an employer fraudulently or negligently makes an incorrect statutory payment, a Penalty Warning Letter should be issued prior to the issue of a Penalty Determination.