Payroll insight
ly/2LtepEU) to work out how much to pay them. It is down to your company policy as to how an employee notifies you of a sickness absence. If they are off sick for fewer than seven days, you can accept self-certification from them. This can be verbally, by letter or they can use form SC2 (https://bit.ly/2g5ntM4). If they are off sick for more than seven days, you can ask for a fit note which can be given by a hospital doctor or a general practitioner (GP). Entitlement Employees who qualify are entitled to SSP for a total of 28 weeks per period of sickness. SSP is paid for the days an employee would normally work – qualifying days (QD). Legislation states that a QD is a day of the week on which the employee is required by his contract of employment to be available for work or chosen to reflect the terms of that contract or such day(s) as may be agreed between the employee and his employer. SSP is paid in the same way and at the same time as wages are normally paid, for example, weekly or monthly and is subject to tax and Class 1 NICs if applicable. SSP is paid at a daily rate. Only qualifying days (QDs) count for paying SSP. A point to remember is that you do not pay SSP for the first three QDs – the waiting days. To work out the daily rate for your employee divide the weekly rate by the number of QDs in that week. For SSP purposes, the week always begins on a Sunday. Although the weekly rate is always the same, the fewer days your employee normally works, the higher the rate of SSP that is payable per QD, i.e. the daily rate for an employee working a three-day week will be higher than that of an employee working a five-day week. (See table below for SSP daily rates
according to QDs.) The maximum entitlement to SSP is 28 weeks in each sickness period or series of linked PIWs. If your employee has regular periods of sickness, they may count as ‘linked’. To be linked, the periods must last four or more days each and be eight weeks or less apart. Your employee is no longer eligible for SSP if they have a continuous series of linked periods that lasts more than three years. ...maximum entitlement to SSP is 28 weeks... (You can calculate when you have paid 28 weeks' worth of SSP by keeping a running total of all SSP paid in a period or linked PIWs. You can use form SSP2 (https://bit.ly/2zOXTu2) to record periods of sickness and payment of SSP). Employees can qualify for sick pay from more than one job. They could also qualify in one job but be fit for work in another; for example, if one job is physical work that they cannot do while ill but the other is office-based. Another area to consider is if the employee has previously been off sick and you have agreed a phased return to work, you must consider payment of the employee's normal wages for days worked and SSP for days not worked in the normal working week. Exceptions There are exceptions where employees do not qualify for SSP if they: ● have received the maximum amount of SSP (28 weeks) ● are getting statutory maternity pay or maternity allowance, as there are special rules for pregnant women and new mothers who do not get these payments
● are off work for a pregnancy-related illness in the four weeks before the week (Sunday to Saturday) that their baby is due ● were in custody or on strike on the first day of sickness (including any linked periods) ● are working outside the EU and you’re not liable for their class 1 NICs ● received employment and support allowance (ESA) within twelve weeks of starting or returning to work for you. If your employee is not entitled to SSP but has been incapable of work for at least four days in a row, you should advise them to claim ESA from Jobcentre Plus office. You should also give them form SSP1 (https:// bit.ly/2LsU2Ep) as soon as possible to help support their claim. There are some employment types – like agency workers, directors and educational workers – who have different rules for entitlement. These are not covered in this article, but guidance can be found here: https://bit.ly/2q5cWu8. Record keeping From April 2014, the relevant legislation was revoked so employers are no longer required by law to keep details of SSP payments. It is up to employers to choose how much detail to keep and in what form. It is advisable to keep details of SSP payments and copies of medical evidence or self-certification forms, in case of a query from employees or from HM Revenue & Customs (HMRC). It is also worthwhile keeping a record of days for which SSP was not paid and related evidence that justifies those decisions. If an employer decides not to pay SSP but does not record why and the employee contests the decision, then HMRC is more likely to find in the employee's favour. SSP payments are included in full payment submissions and in the final submission of the tax year. n
Unrounded daily rate £13.1500 £15.3416 £18.4100 £23.0125 £30.6833 £46.0250 £92.0500
QDs in week
1 day to pay £13.15 £15.35 £18.41 £23.02 £30.69 £46.03 £92.05
2 days to pay £26.30 £30.69 £36.82 £46.03 £61.37 £92.05
3 days to pay £39.45 £46.03 £55.23 £69.04 £92.05
4 days to pay £52.60 £61.37 £73.64 £92.05
5 days to pay £65.75 £76.71 £92.05
6 days to pay £78.90 £92.05
7 days to pay £92.05
7 6 5 4 3 2 1
Note that the weekly rate of SSP is subject to annual review. Usually, any change to the SSP rate takes effect from 6 April, which can mean that the equivalent daily rate of SSP must apply from this date not from the start of the next week.
25
| Professional in Payroll, Pensions and Reward |
Issue 43 | September 2018
Made with FlippingBook - Online magazine maker