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Legislation

New online sick pay service starts next week

Michele SwalesBy Michele SwalesMay 19, 20202 Mins Read
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A new online service is to be launched on May 26 for small and medium-sized employers to recover Statutory Sick Pay payments they have made to their employees.

The Coronavirus Statutory Sick Pay Rebate Scheme is part of a package of support measures for businesses affected by the covid-19 outbreak.

This scheme will allow small and medium-sized employers, with fewer than 250 employees, to apply to HMRC to recover the costs of paying coronavirus-related SSP.

Employers will be able to make their claims through a new online service from May 26. This means they will receive repayments at the relevant rate of SSP that they have paid to current or former employees for eligible periods of sickness starting on or after March 13.

To prepare to make their claim, employers should keep records of all the SSP payments they wish to claim from HMRC. You can read further guidance on checking whether you can claim back SSP paid to employees due to coronavirus on GOV.UK

Secretary of State for the Department of Work and Pensions, Therese Coffey, said: “We are committed to supporting Britain’s small and medium businesses through this pandemic with a comprehensive package of support.

REBATE

“This rebate will put money back in the pockets of millions of employers, ensuring they can hit the ground running as the economy re-opens.”

Employers are eligible if they have a PAYE payroll scheme that was created and started before February 28, 2020 and they had fewer than 250 employees before the same date.

The repayment will cover up to two weeks of SSP and is payable if an employee is unable to work because they have coronavirus, or are self-isolating and unable to work from home, or are shielding because they have been advised that they are at high risk of severe illness from coronavirus

The current rate of SSP is £95.85 per week although employers can choose to go further and pay more than the statutory minimum. This is known as occupational or contractual sick pay. Where an employer pays more than the current rate of SSP in sick pay, they will be able to reclaim only the SSP rate.

The scheme covers all types of employment contracts, including full-time employees, part-time, employees on agency contracts and employees on flexible or zero-hour contracts.

For further information go to https://www.gov.uk/guidance/claim-back-statutory-sick-pay-paid-to-employees-due-to-coronavirus-covid-19

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Michele Swales

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