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SSP: change on the way for employers

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SSP: change on the way for employers

A significant change to statutory sick pay (SSP) is on the way for employers from April 2014.

Under the percentage threshold scheme (PTS), employers can recover SSP if the total paid in a tax month is more than 13 per cent of their gross national insurance contributions in the same tax month.

But the PTS will be scrapped from 6 April 2014, with funding from the scheme diverted to the government’s new Health and Work Service, which will help employees who have been on sickness absence for four weeks to return to work and help employers improve their sickness absence management.

The Department for Work and Pensions said on 10 February: “Any financial loss to business from the ending of the PTS will more than likely be offset by a reduction in lost working days, earlier return to work and increased economic output.”

Once PTS is abolished, employers will have until the end of the 2015-16 financial year to recover SSP paid for sickness absences occurring before the end of 2013-14.

From 6 April, employers’ SSP record-keeping obligations associated with the PTS will also be scrapped but employers will still need to maintain records for PAYE purposes and to show they are meeting SSP obligations.

Link: SSP guidance for employers 


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