Tax Tip
09 Feb 2010
Statutory Sick Pay
by Angela McArdle, FPM Accountants LLP
Question
One of my employees is off sick do I have to pay them sick pay? If so, how much will I have to pay and how is it calculated?
Answer
As an employer you're responsible for paying Statutory Sick Pay (SSP) to employees who meet certain qualifying conditions. SSP is paid at the same time and in the same way you would pay their wages.
Before you can work out how much SSP to pay you'll need:
- the date of your employee's first full day of sick leave
- the date of your employee's last day of sick leave - if it's ended
- medical evidence for any sick leave that lasted more than seven days
Once an employee informs you they are sick they must leave in a sick note before any payment SSP is made. For the first week a self certification is accepted. Any absence longer than 7 days requires a doctor’s sick note.
The first 3 consecutive days an employee is off sick are not paid and are known as waiting days.
The weekly rate of SSP from 6 April 2009 is £79.15.
To calculate SSP the rate is £15.83 gross for each day of sickness they are off after the first three waiting days. £79.15 per week gross thereafter. Payments of SSP count as earnings. You must calculate PAYE and National Insurance contributions (NIC’s) if any in the usual way.
SSP can be paid up to 26 weeks by the employer. After this time the employer must provide the employee with a SSP1 form for the employee to take to the Social Security Agency.
The advice in this column is specific to the facts surrounding the questions posed. Neither the Democrat nor the contributors accept any liability for any direct or indirect loss arising from any reliance placed on replies.
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