The following Employment Tax guidance note Produced by Tolley in association with Vince Ashall provides comprehensive and up to date tax information covering:
Statutory sick pay has its origins in the Social Security and Housing Benefits Act 1982, Part 1. Various amendments have been made to this Act to give us the SSP system we now operate.
New legislation has been put in place in light of the coronavirus outbreak extending the definition of those who are able to claim SSP. See the Coronavirus (COVID-19), statutory sick pay (SSP) and NIC guidance note and SPM110000.
A table of acronyms and related terms used in this note is as follows:
Assessing whether an employee is entitled to SSP involves several processes. Although not necessarily complex, the interaction can be somewhat confusing at times, but these processes and interactions are explained below.
The conditions regarding assessing and paying SSP apply equally to all employees whether they are full-time, part-time, permanent, fixed-term, or casual.
The first step is to ascertain whether the employee who is on sick absence meets the qualifying conditions. This involves determining:
the length of the absence
the employee’s AWE over the relevant period
QD in the period of absence
WD in the period of absence
whether the latest period of absence links to an earlier period of absence
reasons why SSP cannot be paid, or can no longer be paid
While employers are required to pay SSP, there is no recovery of these amounts from the Government and so the cost falls entirely on the employer.
Before SSP can be paid, an employee has to have a PIW. This is a period of sickness absence of four consecutive calendar days or more. If the absence is less than four consecutive calendar days, SSP is not payable.
No SSP is due for the first three days of sickness absence,
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