We can give you the right advice about your employees’ eligibility for sick pay
Statutory Sick Pay (SSP) is paid to employees who are unable to work because of illness. SSP is paid at the same time and in the same way as you would pay wages for the same period. The employer is responsible for operating the SSP scheme, which includes making payments to employees who meet certain qualifying conditions.
An employee must meet all the following conditions to get SSP:
SSP isn’t payable straight away. The first 3 Qualifying Days of a PIW are called ‘Waiting Days’ when SSP isn’t payable. SSP is payable from the first qualifying day after the 3 waiting days. The weekly rate of SSP is currently £94.25 and is payable for a maximum of 28 weeks in a PIW or series of linked PIWs.
There may be occasions where you are only to pay SSP for part of a week. If so you need to calculate a daily rate of SSP. The daily rate is the weekly rate divided by the Qualifying Days (working days) in that week. For SSP purposes the week always begins on a Sunday.
HMRC may wish to check that you are operating the SSP scheme correctly. It is down to you to provide proof of this, which is why keeping accurate records is essential.
HMRC recommends you record the following:
You can use form SSP2 to record this information – an interactive form is available within HMRC’s Basic PAYE Tools software package. You can also download here or order paper copies from the Employer Orderline. A history of sickness absence is also kept on most payroll systems. Use and retain a copy of form SSP1 – or your own equivalent – when your employee has had the maximum amount of SSP and needs to claim Employment and Support Allowance.
There is a quick and easy way to calculate SSP, go to SSP Calculator.
The calculator will help you work out if your employee is entitled to SSP and if so, provide a schedule of the payments you should make.
For more information on how Stipendia can help you, please contact us.