Statutory sick pay
Statutory Sick Pay (SSP) is a payment given by employers to employees who are off work sick. If you employ a personal assistant (PA) you might need to think about SSP.
This page tells you the basics and how to deal with SSP for tax and National Insurance (NIC) purposes in your payroll.
SSP – the basics
Calculating and recording SSP
Can I recover any SSP
If an employee is sick for four or more consecutive days (including non-work days, such as weekends and non-work days) – they may be entitled to SSP for a maximum of 28 weeks. Such a period is known as a ‘period of incapacity for work’ (PIW).
Example: Paul was off sick from Wednesday to Monday inclusive. A PIW exists as he was ill for 6 days – the fact that two of those days were at the weekend does not matter.
SSP is payable in respect of days within a PIW that your employee would usually be expected to work – these are called ‘qualifying days’. SSP is normally not payable for the first three qualifying days of sickness (sometimes these are known as 'waiting days').
Example: Jerome, who works Monday to Friday, was off sick from Tuesday 4 September to Thursday 13 September 2018, returning to work on Friday 14 September 2018.
There is a PIW as he was ill for 10 consecutive days. During the PIW there are 8 qualifying days (you exclude the Saturday and Sunday as Jerome does not normally work on these days). However, Jerome is only entitled to 5 days of SSP as the first three qualifying days are excluded.
There are certain qualifying conditions for SSP which have to be met, for example, SSP is not payable at the same time as Statutory Maternity Pay or where an employee’s average weekly earnings prior to the start of the PIW are less than £116 in 2018/19. (Where the employee has not yet been in the employment for 8 weeks, SSP is worked out by reference to the amount of pay the employee is due to be paid under their employment contract.)
If your employee is not entitled to SSP, then you must give them form SSP1 explaining why not.
SSP is the legal minimum you have to pay. If you have an alternative agreement with your employee (e.g. to continue to pay them as normal when they are sick), you will not have to pay SSP over and above what you are already paying, provided what you are paying is above the SSP rate.
You will probably want to satisfy yourself that the illness is genuine before paying SSP. Your employee would usually 'self-certify' for the first week of illness and obtain a doctor’s note for longer periods of absence. Please note you cannot insist on a doctor’s note for the first 7 days. If you are not satisfied your employee’s sickness is genuine then you have to give a written reason for refusing to pay SSP to them.
The weekly rate of SSP from 6 April 2018 is £92.05. The actual amount paid daily depends on the number of qualifying days an individual has in a week.
Example: Rena is off sick from Monday to Friday which are the days she normally works in a week. She is due to be paid SSP for 2 days as the first 3 days are ‘waiting’ days. She will receive SSP of £18.41 per day (£92.05 divided by 5) and therefore in total will receive £36.82.
If you are an online filer, your payroll software (including HMRC's Basic PAYE Tools) will help you calculate any SSP due but it is useful to be able understand for yourself how the figures are arrived at.
Penalties may apply if you fail to make correct payments.
If you do have to make SSP payments you need to keep records of this – including all dates that the employee’s sickness lasts, plus copies of any medical evidence provided. You can use HMRC’s Statutory Sick Pay record sheet to do this, although you can retain the information in another way if you wish. These records must be kept for 3 years after the end of the tax year to which they relate.
If an employee is entitled to SSP, the payment will be due at the same time as their normal wages (e.g. weekly/monthly) and SSP payments will be treated as earnings for Pay As You Earn (PAYE) tax and NIC purposes.
If you were a ‘small’ employer, you used to be able to recover some of the SSP you paid to your employees, however you cannot recover any SSP for tax years from 2014/15 onwards.
Instead, employers in England, Wales and Scotland are able to access the ‘Fit for Work’ service. The 'Fit for Work' service is explained in detail at the Fit for Work website (covering England and Wales) and Fit for Work Scotland website. (The service does not apply in Northern Ireland.) Please note that the assessment part of this service has been discontinued due to low referral rates. Employers can continue to access the Fit for Work helpline for general advice after this date.
There is lots of useful information in the GOV.UK Statutory Sick Pay guide.
For a full collection of detailed guidance for employees and employers on Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay, please see GOV.UK.