Statutory sick pay

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Discussion

Imran-vx

Original Poster:

11,800 posts

236 months

Tuesday 4th September 2007
quotequote all

I have seen that SSP is payable after 4 days sickness up to 28 weeks and is still subject to the usual tax and NI contributions.

Do I take it that the employer has to pick up the tab for SSP or do they reclaim it?

My only employee is about to go sick for 16 weeks. Looks like I might be busy!

FUBAR

17,062 posts

239 months

Tuesday 4th September 2007
quotequote all
If its the same as SMP (which I believe it is) then the employer reclaims it via deductions from PAYE payments to the IR.

Someone more knowledgeable will be along soon smile

kryten22uk

2,344 posts

232 months

Tuesday 4th September 2007
quotequote all
FUBAR said:
If its the same as SMP (which I believe it is) then the employer reclaims it via deductions from PAYE payments to the IR.

Someone more knowledgeable will be along soon smile
And what happens if the employer does not have any PAYE payments?

Imran-vx

Original Poster:

11,800 posts

236 months

Tuesday 4th September 2007
quotequote all
kryten22uk said:
FUBAR said:
If its the same as SMP (which I believe it is) then the employer reclaims it via deductions from PAYE payments to the IR.

Someone more knowledgeable will be along soon smile
And what happens if the employer does not have any PAYE payments?
Over pay, so you can get it then claim it back at year end!

smartie

2,604 posts

274 months

Wednesday 5th September 2007
quotequote all
You can claim it back, subject to it being more than 13% of your monthly NI payment due. ie if you pay out £200 of SSP and your monthly NI payment is £500, 13% of £500 is £65, so you could reclaim £135 of the SSP you've paid.

If that means you are entitled to a net refund of PAYE in a particular month, then you can either wait until you are making payments again and use the "credit", or you can apply for funding to pay the SSP.


Imran-vx

Original Poster:

11,800 posts

236 months

Wednesday 5th September 2007
quotequote all
smartie said:
You can claim it back, subject to it being more than 13% of your monthly NI payment due. ie if you pay out £200 of SSP and your monthly NI payment is £500, 13% of £500 is £65, so you could reclaim £135 of the SSP you've paid.

If that means you are entitled to a net refund of PAYE in a particular month, then you can either wait until you are making payments again and use the "credit", or you can apply for funding to pay the SSP.
Am I reading this correctly? Does that suggest that you can't reclaim SSP (which is about £320 a month) if your NI contributions are not at that level? To reclaim the £320 for one person, it looks from that calculation like you have to be paying £1500 in NI?

Imran-vx

Original Poster:

11,800 posts

236 months

Wednesday 5th September 2007
quotequote all

DWP have an online calculator but it looks like directors are exempt from SSP and it looks like the employee must be paid at the lower earnings limit to qualify.

blindswelledrat

25,257 posts

233 months

Wednesday 5th September 2007
quotequote all
Imran-vx said:
DWP have an online calculator but it looks like directors are exempt from SSP and it looks like the employee must be paid at the lower earnings limit to qualify.
I looked into it last year and all I remember is that realistically a business could not claim it back as the criteria were so ludicrous that no ordinary company fit the bill.

Imran-vx

Original Poster:

11,800 posts

236 months

Wednesday 5th September 2007
quotequote all
blindswelledrat said:
Imran-vx said:
DWP have an online calculator but it looks like directors are exempt from SSP and it looks like the employee must be paid at the lower earnings limit to qualify.
I looked into it last year and all I remember is that realistically a business could not claim it back as the criteria were so ludicrous that no ordinary company fit the bill.
Looks like I will have to knuckle down for 3 or 4 months then.