Statutory Sick Pay Advice
Louise Mitchell, Director of Precise Payroll provides information and advice in relation to statutory pay.
If you would like advice, then please write in where you questions will be answered by Louise Mitchell
Q I run a small company. One of my employees is currently off sick and it looks likely that he will be off for some time. Do I have to pay him his normal salary whilst he is off ill?
A No. If he qualifies for Statutory Sick Pay (SSP), he will be entitled to £70.05 per week. If, on average, he earns less than £84.00 per week, he does not qualify for SSP. If this is indeed the case, you must provide them with an SSP1 form detailing this so that they can take this to the DSS to claim assistance. In order to receive SSP, the employee would have to be absent for four or more days. For example, if the employee is off for two weeks (Monday - Friday), they would receive their normal pay for the first three days, and thereafter receive SSP for the additional seven days. However, for any absence longer than a week, they are required to provide medical evidence.
Q One of my employees is due to have a baby in April 2007. I think I remember reading that the period that Statutory Maternity Pay (SMP) is paid for is due to increase - is that correct?
A For babies born after 1 April 2007 SMP should be paid for a continuous period of up to 39 weeks.
Q How do I work out an employee's SMP?
A You should review the employee's gross earnings in a set period - this is usually the eight week period up to and including the 15th week before their due date.
For the first 6 weeks SMP should be paid at 90% of the employee's average weekly earnings. Whilst for the remaining 33 weeks SMP is paid at the lower of either the standard rate (£108.85) or a rate which is equal to 90% of the employee's average weekly earnings.
Q One of my employees is currently receiving Statutory Sick Pay (SSP) - can I reclaim this and if so how and who from?
A It is possible for you to reclaim this through your monthly PAYE, however, only in the following circumstance: If you multiply the total gross NIC figure (add the gross employer and employee NIC for all employees paid within the specified PAYE period) by 13% and this figure is less than the SSP figure paid, you can reclaim the difference.
Q One of my newest employees, she has been with us for just over six months, has just told me that she is in the process of adopting a child. Can you advise me whether she should be paid Statutory Adoption Pay (SAP)?
A Your employee will be eligible for SAP if she meets the following conditions:
* She has been matched with a child for adoption by an adoption agency?
* She has been in your employ without a break for at least 26 weeks up to and including the week the adoption agency told her that she has been matched with a child for adoption
* She earns enough on average to be relevant for NI purposes.
If an employee's gross weekly earnings are £84.00 or more then she should receive Statutory Adoption Pay at £108.85 or 90% of her average gross weekly earnings if this is less than £108.85 for 26 weeks.
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