Statutory Sick Pay (SSP) is paid to employees who are unable to work because of illness. This is the legal minimum you must pay your employee. This guide explains how you would go about this, but first let’s look at some of the terminology around SSP.
In order for SSP to be paid a PIW needs to be formed. This is a period of sickness lasting 4 or more consecutive days, this includes non-working days, bank holidays and weekends.
If there are less than 4 days then no PIW has been formed, so no SSP is due.
An employee must have average weekly earnings of at least the Lower Earnings Limit (LEL) for National Insurance to qualify for SSP.
These are the days your employee normally works, they can be counted as waiting days and can be paid SSP.
When a PIW had been formed, the first 3 days are not payable, these are the waiting days, after this SSP is due. If the PIW is linked then the waiting days only apply to the first PIW.
Once applied, you will see the waiting days, the number of SSP days and the amount of SSP paid.
You will also see the corresponding days of salary being deducted, so the employee won’t get paid his normal wage and SSP at the same time.
Should the employee be off sick again for more than 4 consecutive days within a period of eight weeks or less, their SSP will be linked. This means that the employee will not have 3 waiting days deducted.
You may have an employee that isn’t entitled to SSP, it could be that they have reached the maximum 28 weeks payable, or they don’t have sufficient earnings. In these cases you need to issue an SSP1 form.
If you tick Choose not to pay SSP, it will then allow you to select a reason from the drop down list.
Once this has been applied, the pay run will show that no SSP has been paid.
Once the pay run has been finalised, go into Employee Details, Leave Balances to find the link to the SSP1 form.
Note: if you are transferring your payroll from another system and you have an employee who is currently off sick, you can override the waiting days in the pay run to 0.
You also have the option to override the average weekly earnings in the pay run as well.
If your employee has reached the cap of 28 weeks SSP, you will be unable to pay any more SSP and will be given a warning in the View Log area.
Use the Employee Details, Documents to store any sick certificates.
You can set up your employees qualifying days pattern in Employee Details, Pay run Defaults, Standard Work Week, then click on Advanced to edit the days your employee works.