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GUIDE TO STATUTORY SICK PAY

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					              GUIDE TO STATUTORY
                   SICK PAY

                 The Nationwide Payroll Company
                            The Studio
                          Benefield Road
                             Brigstock
                            NN14 3ES

                         Tel: 01536 373111
                         Fax: 01536 373123

                 www.nationwidepayroll.co.uk
               email: info@nationwidepayroll.co.uk



                  Nationwide Payroll Company is a fully
                     accredited BACSTEL-IP bureau
                            Established 1994


QUALIFYING FOR STATUTORY SICK PAY
An employee reporting sick is the starting point for SSP. Employers can
make their own rules for when and how they are notified of sickness, but
employees must be informed of this in advance. An employee must satisfy
a number of qualifying conditions to be entitles to SSP as follows:
   • Must be aged between 16 and 65.
   • Is sick for four or more days in a row.
   • Earn more than £84 a week (£364pm). (2006/07).
   • Have not already had 28 weeks of SSP.
   • Have not received Incapacity Benefit within the last 8 weeks.
   • Is actually off sick, not away from work for compassionate reasons,
     and is personally incapable of work.
An employee can cover their first week of sickness by an SC2 - Employees
Self Certification form, but beyond this week they must be covered by a
medical certificate.

If your employee always earns or on average earns less than £84 per
week they will not be entitled to SSP. Employers should provide
employees with a form SSP1 explaining why they cannot pay SSP. This
enables employees to claim Incapacity Benefit from their Job Centre or
Social Security Office.
LINKING PERIODS
Employees must be sick for 4 days or more to qualify for SSP. The first
three days of sickness do not qualify for SSP. Where a period of
Incapacity to Work (PIW), is separated by an earlier PIW within less than
eight weeks (56 days), the two absences "link" and are treated as one
PIW. This means that they do not lose pay for the first three days of
sickness in the second occurrence. Odd days of sickness do not form
Incapacity for Work and cannot "link".

PAYING SSP
SSP is paid at the same time and in the same way as wages are paid for
that period. A full week for SSP purposes begins with a Sunday and ends
the following Saturday. SSP must be paid for all periods of entitlement
regardless of whether or not earnings would normally be due. SSP is only
paid for the Qualifying Days. This is from the fourth day of sickness if not
"linked" or from the first day of sickness if "linked". The weekly rate of
SSP is £70.05 weekly regardless of days worked. If they work a 5 day
week, divide this by 5 to get daily figure, or if they work 3 days, divide by
3 to get a daily SSP rate. (2006/2007).

DEDUCTIONS FROM PAY
SSP must be treated just like pay, so deductions for PAYE and NI should
be made if appropriate. Any other deductions which may lawfully be take
from pay can also be made from SSP, for example Pensions, student loans
and attachment of earnings orders.

WHEN TO STOP PAYING SSP
You should stop paying Statutory Sick Pay when:
   • The employee returns to work.
   • Your employee is still sick when you have paid SSP for 28 weeks.
   • Complete form SSP1 and send it to your employee.
   • Your employee leaves your employment.
   • Your employees medical certificate expires.
Any contract of employment will determine whether the employee
continues to receive their normal pay, including their SSP entitlement.

RECOVERING SSP
You may be able to recover some, or all, of the SSP you have paid,
depending upon the amount of NI for which you are liable in the month
when SSP is paid.

 This guide is not a definite statement of the law but outlines the
                        basic concepts only.
           Further details and forms can be obtained from:
                   The Nationwide Payroll Company
                          Tel: 01536 373111
                          Fax: 01536 373123
                 email: info@nationwidepayroll.co.uk
website: www.nationwidepayroll.co.uk

				
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