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Coronavirus: Changes to Sick pay as a result of Covid-19

Article ID
12215
Article Name
Coronavirus: Changes to Sick pay as a result of Covid-19
Created Date
31st March 2020
Product
IRIS PAYE-Master, Earnie, IRIS Payroll Business, IRIS Earnie IQ, IRIS Bureau Payroll, IRIS GP Payroll
Problem
On the 4th of March, to combat the spread of Coronavirus, the Government announced that workers will receive statutory sick pay from their first day off, not the fourth. This means that employee’s will not have any waiting days associated with their SSP calculation.
Resolution

Contents

What does this mean?

Here we will assume the 2020/2021 SSP rate is £95.85 and a qualifying pattern of Monday to Friday.

SSP Rules

Normally the SSP calulation would be: If the employee was off for five days Monday to Friday, three are classed as waiting days and two are qualifying days. If the employee earns more than the LEL (£120 per week 2020/2021) they would be paid: 2* (95.85/5) = £38.34.

For those employees that self-isolate the SSP paid would be: 5* (95.85/5) = £95.85

How do I handle this in my payroll software?

Please follow the steps below for your software product

IRIS Payroll Business/IRIS Bureau Payroll/IRIS Payroll for Accountants

From Pay – Enter Variations, in the Statutory Payments | SSP field, amend the SSP value accordingly.


Earnie

From Payroll | Do/Redo Payroll, select Click arrow to view or alter details and in the Statutory Payments | SSP field amend the SSP value accordingly.


Earnie IQ

From Payroll – Do/Redo Payroll, in the Absence section, amend the Sick Pay: value


GP Payroll

In Payroll Calculations, double click the SSP field and change the Number of SSP days this month


PAYE-Master

In Pay – Variations – Enter Variations, select the Statutory Payments tab and amend the Amount field in the SSP section


IRIS Payroll Professional (formerly Star)

We recommend creating a component called ‘SSP Covid19’ or similar). You can record a comment against the sick days to help your reporting in the future.  

IRIS Payroll Professional has designed a query that will report on any comments added within the absence calendar.

We propose that you enter the word Virus or Covid for recording those who are sick with the illness.

You can then run this query to return the days recorded which has this comment assigned. See the IPP COVID-19 Support guide here


Recovery of Covid-19 related SSP

It was announced in the budget, delivered 11th March, that companies with less the 250 employees would be able to reclaim statutory sick payments made as a result of the Covid-19 outbreak.

HMRC recognises that existing systems are not designed to facilitate such employer refunds for SSP and are working with developers over the coming months to set up a repayment mechanism, whether this be a part of your payroll software or some other, yet to be determined, external process.

We plan to issue further detailed guidance as soon as possible.

Update

Businesses can reclaim SSP paid to employees for up to 2 weeks sickness absence due to COVID-19

Eligible for small and medium-sized businesses and employers with a workforce of fewer than 250 employees.

HMRC are consulting with stakeholders on how businesses will reclaim SSP paid in relation to COVID-19

We plan to issue further detailed guidance as soon as possible.


For detail on the recovery of wages for furloughed workers see:

https://www.iris.co.uk/support/knowledgebase/kb/12221/

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