From April 2014 HMRC have abolished the Statutory Sick Pay (SSP) percentage threshold scheme (PTS). The PTS scheme compensated mainly smaller employers for higher than average sickness absence.

Prior to April 2014 an employer was entitled to recover some of the SSP paid to their employees if the total of SSP paid in tax month was greater than a set percentage of their gross Class 1 National Insurance Contributions -NIC (employer and employees) liability for that month.

Employers will have until 5 April 2016 to recover SSP (under PTS where available) paid for sickness absences occurring before 5 April 2014 (2013/14).

Where a payment for SSP is being made from 6 April 2014 for a period of incapacity before 5 April 2014 but has been notified late then the employer will need to make an application for recovery using form SP32  ‘late claim for recovery of statutory payments or NIC compensation’. The claims under PTS for up to six years can be made up to 5 April 2016 after which time no claims can be made. Claims using form SP32 will be repaid by way of payable order.

If SSP has already been paid but just not recovered, a claim under PTS at 5 April 2014 and then the normal process for making adjustments to a closed PAYE year will need to be followed - correcting payroll errors of a previous year.

Employers will still have to pay SSP (see sick pay entitlement) and will be obliged to produce records that confirm they have met their legal SSP obligations should HMRC require them. The record keeping requirements for SSP prior to 5 April 2014 have been abolished but employers must keep the following records for SSP for three years from the end of the tax year they relate to.

• All sickness periods lasting at least 4 days;
• Your SSP payments; and
• Any weeks you didn't pay and why.

Please contact us for further information