Chapter 28 - Statutory Sick Pay Flashcards
Introduction
Employees are entitled to SSP for up to 28 weeks when they are absent from work due to sickness. It’s paid on the employees normal pay day and will be subject to PAYE tax and NIC.
There must be a period of incapacity to work and during that week there must be one or more qualifying days
Periods of Incapacity to Work (PIW)
A PIW is a period of 4 or more consecutive days when an individual is incapable of working from sickness. The 4 days include weekends and bank holidays.
Qualifying Days
SSP is only paid in respect of qualifying days in a PIW. A qualifying day is basically any day than an employee is normally expected to work.
SSP is NOT paid for the first three qualifying days n a PIW, they are known as waiting days
Amount of SSP
Employee is entitled to SSP if their average weekly earnings are equal or above th LEL for NIC (£116).
The earnings checked are the average of the 8 week period before sickness.
If paid monthly, divide the 8 week period earnings by 2, times by 12 and divide by 52
SSP is paid daily at a flat rate of £92.05 a week. Actual amount depends on the number of qualifying days in a week
Cessation of Payments
SSP stops when the PIW ends and the employee goes back to work.
Payments also stop when 28 weeks worth of SSP has been paid, at which point a SSP1 must be issued by the employer so the sick can claim benefits or UC
Payments will also cease when stat mat leave starts or when an employee leaves
Notification and Evidence for SSP
Employee must notify the employer that they are unfit for work. Employer can draw up own procedures for notification. Where none are drawn up, the employee most notify employer in writing within 7 days of the first qualifying day of absence
Opting Out of SSP
An employer can opt out if wages and occupational sick pay is above the SSP rates
Reporting
SSP forms part of the employees earnings for PAYE tax and NIC and must be reported on a FPS on or before the date of payment
