News
SSP: change on the way for employers
06 March 2014
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.
Case Studies
-
Customer care is top of the list for packaging business
-
A taste for growth, a thirst for knowledge
-
Sometimes a business does exactly as it says on the tin
-
A shared passion for architecture and a head for numbers
-
Child's play with proactive accounts management
-
Taxing demands with old school charm
-
A modern approach required for music moguls
-
Cut above the rest in personal management style
-
Smiles all round for dental practice