If you are an employer in the UK, it is important to understand how to calculate Statutory Sick Pay (SSP).
This article will explain the process for doing so. First, we will discuss the eligibility requirements for SSP. Then, we will walk through the steps of calculating SSP payments. Finally, we will provide a few tips on how to administer SSP payments correctly.
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What is Statutory Sick Pay?
Statutory Sick Pay (SSP) is a government-mandated benefit that provides employees with a percentage of their regular salary when they are absent from work due to illness or injury. SSP payments are intended to help employees maintain their standard of living while they are unable to work.
Eligibility for Statutory Sick Pay (SSP)
To be eligible for Statutory Sick Pay (SSP), an employee must:
- Be employed under a contract of employment;
- Have been working for you continuously for at least four weeks before the first day they are sick; and
- Earn at least £112 per week (before tax).
Can you claim SSP if you are receiving maternity, paternity, or adoption pay?
If you are receiving maternity, paternity, or adoption pay from your employer, you may still be eligible for Statutory Sick Pay (SSP). However, the amount of SSP that you receive will be reduced by the amount of other benefits that you are receiving.
Do you need a doctors note to claim SSP?
Yes, you will need a doctor’s note in order to claim SSP. The doctor’s note must state that you are unfit for work due to illness or injury.
Who is not eligible for SSP?
There are a few groups of people who are not eligible for statutory sick pay, including:
- People who are self-employed;
- People who work for an agency;
- People who have already received the maximum amount of SSP (28 weeks); and
- People who do not earn enough money to qualify (less than £112 per week).
When is an employer required to pay SSP?
An employer is generally required to pay Statutory Sick Pay (SSP) when an employee:
- Is absent from work due to illness or injury; and
- Meets the eligibility requirements described above.
How many days must an employee be sick before being eligible for Statutory Sick Pay?
The first 3 days of sickness are not covered by SSP. Then, Statutory Sick Pay (SSP) is payable for up to 28 days in a row. If an employee is away from work for more than 28 days, they may be eligible for other benefits, such as Employment and Support Allowance.
What is the Statutory Sick Pay Rate in 2023?
The Statutory Sick Pay Rate is reviewed each year and may change. As of April 2023, the current rate is £96.35 per week. However, it is likely that the rate will increase in 2024. The government typically announces changes to the Statutory Sick Pay Rate in October or November of each year.
The amount of Statutory Sick Pay (SSP) that an employer must pay is based on the employee’s salary. This means that an employee who earns a minimum of £112 per week would be entitled to receive £96.35 per week in SSP payments.
How to calculate Statutory Sick Pay
If an employee meets all of the eligibility requirements, you must calculate their SSP payments as follows:
- Weekly SSP rate ÷ Number of qualifying days in a week
- Multiplied by (number of working days the worker is sick – 3 days)
Weekly SSP rate is the Statutory Sick Pay Rate, which is £96.35 per week as of April 2023.
It is important to note that SSP payments are only payable for a maximum of 28 weeks in any three-year period. Therefore, you should keep track of how many weeks an employee has been on SSP so that you can stop making payments when they reach the 28-week limit.
How to calculate Statutory Sick Pay for part-time workers
If an employee works part-time, their SSP payments should be calculated based on the number of hours they work each week.
Part-time worker’s weekly SSP rate = (Hourly pay rate x Statutory Sick Pay Rate) ÷ Number of qualifying days in a week
What should employers do if they have employees who are not eligible for Statutory Sick Pay?
If you have employees who are not eligible for Statutory Sick Pay, you may want to consider offering them other benefits, such as:
- Unpaid leave;
- Paid time off (PTO); or
- Sick leave.
You should also check your company’s policies to ensure that you are not inadvertently denying eligible employees their rightful Statutory Sick Pay payments.
What is the process for applying for Statutory Sick Pay?
The process for applying for Statutory Sick Pay is relatively simple. An employee should:
- Notify their employer of their illness or injury; and
- Complete a SSP claim form.
- Once the claim form is complete, the employee should return it to their employer.
- The employer will then review the claim and make a decision about whether or not to approve the payment of Statutory Sick Pay.
If you are an employer who needs help calculating Statutory Sick Pay, you can contact HMRC for assistance.
You can also find more information about Statutory Sick Pay on the government’s website.
How to administer Statutory Sick Pay correctly in 2023
Once you have calculated an employee’s SSP payments, you will need to administer those payments correctly. This includes issuing payslips and submitting the correct paperwork to HMRC.
The best way to administer Statutory Sick Pay is by using a payroll software solution. A good payroll software will automate all of the calculations and administrative tasks related to SSP, making it easy for you to get paid correctly and on time.
If you are looking for a good payroll software solution, we recommend finding a provider that offers a free trial. This will allow you to test out the software before committing to a subscription.
Can an employer reclaim SSP payments from the government?
Employers are responsible for paying SSP payments to employees. However, yes they can recover up to two weeks’ worth of SSP payments from the government.
How to reclaim Statutory Sick Pay from the government
The steps to reclaim Statutory Sick Pay (SSP) from the government are as follows:
- Step one: Keep records of the dates when your employees were off sick
You will need to keep records of the dates when your employees were off sick in order to submit a claim to HMRC. These records can be in paper or electronic format.
- Step two: Pay your employees’ SSP payments on time
You must pay your employees’ SSP payments on time in order for HMRC to reimburse you. This means that you should make sure to calculate SSP correctly and issue payslips in a timely manner.
- Step three: Submit a claim to HMRC within four weeks of the end of the tax month
In order to reclaim SSP from the government, you must submit a claim to HMRC within four weeks of the end of the tax month in which the employee was paid. This claim can be submitted online or by post.
What happens if an employer does not pay Statutory Sick Pay?
An employer who does not pay Statutory Sick Pay (SSP) may be liable to a fine from HMRC. The amount of the fine will depend on how long the employer fails to make SSP payments.
Tips to get SSP correct
A few tips on administering Statutory Sick Pay (SSP) correctly:
- Keep good records of employee absences due to illness or injury. This will help you keep track of who is eligible for SSP payments and how much they are entitled to receive.
- Make sure you understand the eligibility requirements for SSP before you make any payments. This will help you avoid overpaying or underpaying employees.
- Stay up to date on the latest SSP rates and changes to the eligibility requirements. These can change from time to time, so it is important to stay informed.
By following the steps above, you can ensure that you are correctly calculating and administering Statutory Sick Pay in the UK. Doing so will help you avoid any penalties or fines from HMRC. In addition, it will provide peace of mind for your employees, knowing that they will still receive a portion of their regular salary even when they are unable to work.
The current rate of Statutory Sick Pay in the UK is £96.35 per week.
Employees who are unable to work due to illness or injury and meet the eligibility requirements are entitled to Statutory Sick Pay.
The steps to submit a claim for Statutory Sick Pay reimbursement from the government can be found above. You must submit your claim within four weeks of the end of the tax month in which the employee was paid.
If you don’t pay Statutory Sick Pay, you may be liable to a fine from HMRC. The amount of the fine will depend on how long you fail to make SSP payments.
SSP is a government-mandated benefit that provides employees with a percentage of their regular salary when they are absent from work due to illness or injury.