As an employer, it is crucial to understand and comply with statutory sick pay (SSP) regulations in order to effectively support and manage your employees’ absence due to illness SSP is a payment made by employers to employees who are unable to work due to illness, and it is a legal requirement for all employers to provide this benefit to their employees In this comprehensive guide, we will cover everything you need to know about SSP as an employer.
Who is eligible for SSP?
In order to be eligible for SSP, your employees must have been off work due to illness for at least four consecutive days, including weekends and bank holidays They must also earn an average of at least £120 per week to qualify for SSP It is worth noting that employees do not need to provide a doctor’s note for the first seven days of sickness absence, commonly known as a “fit note” After the first seven days, employees will need to provide a fit note from their doctor in order to continue receiving SSP.
How much SSP should you pay?
The current rate of SSP is £96.35 per week and is paid for up to 28 weeks As an employer, you are required to pay SSP to your employees for the days they would normally work, which is usually calculated based on their weekly earnings If your employees work irregular hours or have variable earnings, you can use the government’s SSP calculator to help you determine the correct amount to pay.
When should SSP be paid?
SSP should be paid to eligible employees from the fourth day of sickness absence onwards This means that you do not need to pay SSP for the first three days that an employee is off work due to illness, also known as “waiting days” If an employee returns to work and then falls ill again within eight weeks, they may not need to serve another set of waiting days, depending on the circumstances.
Record-keeping and reporting requirements
As an employer, you are required to keep accurate records of SSP payments made to your employees, including the dates and amounts paid These records should be kept for at least three years in case they are requested by HM Revenue & Customs (HMRC) during a compliance check ssp guide for employers. You should also include details of SSP payments on your employees’ payslips and P60s for the relevant tax year.
Reclaiming SSP from HMRC
Small employers with fewer than 250 employees can reclaim SSP paid to their employees from HMRC, up to a certain limit This is known as the Percentage Threshold Scheme (PTS) and is designed to help businesses with high levels of sickness absence To reclaim SSP under the PTS, you will need to keep detailed records of SSP payments made and submit a claim to HMRC within six months of the end of the tax year in which the payments were made.
Supporting employees on sick leave
In addition to providing SSP payments, it is important for employers to support their employees who are off work due to illness This can include regular communication to check on their well-being, offering flexible working arrangements or access to employee assistance programs, and facilitating a phased return to work when they are fit to do so Employers should also be mindful of their legal obligations under the Equality Act 2010, which protects employees from discrimination due to illness or disability.
Managing long-term sickness absence
If an employee is unable to return to work after 28 weeks of SSP, they may be eligible for other benefits such as Employment and Support Allowance (ESA) In this case, employers should stay in contact with the employee to discuss their options and provide support where possible It is also recommended to seek legal advice if the situation becomes complex or if there are concerns about the employee’s ability to return to work in the future.
In conclusion, understanding and complying with SSP regulations is essential for employers to effectively support and manage their employees’ absence due to illness By following the guidelines outlined in this comprehensive guide, employers can ensure that they meet their legal obligations while also providing necessary support to their employees during times of sickness By doing so, employers can create a positive and inclusive workplace culture that promotes employee well-being and productivity.