least 12 weeks will be entitled to Statutory Sick Pay (SSP). The process is known as shielding, and the regulations mean that people are deemed as incapable of work for the period in which they are shielding.
If an individual cannot work as they are shielding due to coronavirus (COVID-19), then they will be entitled to receive SSP for every day that they are unable to work. They will be entitled to SSP from day one of sickness, in line with how SSP will be paid to those self-isolating, or absent, due to coronavirus. Individuals must, however, shield for a minimum of four days to be eligible for SSP payment from day one. Individuals must also meet the other eligibility requirements for SSP. The changes have been made, as previously those individuals who were shielding were not entitled to SSP , and the amendments are intended as a safety net for individuals in cases where their employer opts not to furlough them under the Coronavirus Job Retention Scheme (CJRS) and does not have other suitable policies in place, e.g. allowing the individuals to work from home.
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The Statutory Sick Pay Rebate Scheme and state aid 27 April 2020
Guidance relating to the Statutory Sick Pay (SSP) Rebate Scheme has been updated to reflect the fact that claim amounts under the scheme should not exceed €800,000.
Employers are informed that their claim amount must not exceed the maximum €800,000 of state aid under the EU Commission temporary framework. This is when combined with any other aid received under the framework. Agriculture has a lower maximum of €100,000, and the limit for aquaculture and fisheries is €120,000. The European Commission approved a £50 billion “umbrella” UK scheme to support small and medium-sized enterprises (SMEs) and large corporates in the UK affected by the outbreak of coronavirus. More information can be found here. Payroll professionals will be familiar with state aid due to recent changes to the Employment Allowance. Only employers with a secondary Class 1 National Insurance contributions (NICs) bill of less than £100,000 in the previous tax year are eligible for the Employment Allowance as of 6 April 2020, and this means that it is reclassified as de minimis state aid.
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Statutory Sick Pay (SSP) Rebate Scheme launched 26 May 2020
HMRC have launched the Coronavirus rebate scheme for SME employers who have paid SSP due to coronavirus incapacity.
The Statutory Sick Pay Reclaim Scheme will be open to employers who had fewer than 250 employees at 28 February and also had an active PAYE scheme at that date.
The Coronavirus outbreak has introduced two new reasons, into the SSP regulations, for incapacity:
Self-isolation was introduced through regulations, from 13 March, where an eligible employee:
Is showing signs of coronavirus,
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Is living with someone who has coronavirus
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The Chartered Institute of Payroll Professionals
Payroll: need to know
cipp.org.uk
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