New rules on reclaiming statutory sick pay
New regulations
On 26 May 2020 the Statutory Sick Pay (Coronavirus) (Funding of Employers’ Liabilities) Regulations 2020 came into force. Under them, “eligible employers” can ask HMRC to reimburse certain statutory sick pay costs (SSP). What do you need to know?
Eligible businesses
Firstly, these Regulations don’t apply to every business. In order to be eligible for an SSP reimbursement payment from HMRC, you must have had fewer than 250 employees enrolled on your PAYE payroll scheme on or before 28 February 2020 . Assuming, this requirement is met, there are several other qualifying criteria.
Type of sickness
The employee’s reason for sickness absence must be coronavirus-related, i.e. either they or someone they live with have been, or were, diagnosed with coronavirus or are shielding because of it.
Where sickness absence is due to any other reason, for example, the employee has suffered an injury or is recovering from an operation, you can’t claim any SSP reimbursement from HMRC.
Dates of absence
Also, the employee’s coronavirus-related period of sickness absence must have started on or after:
- 13 March 2020 where they had coronavirus or were self-isolating because of coronavirus
- 16 April 2020 where they were shielding because of coronavirus.
Two weeks’ SSP
Assuming an employee’s sickness absence and their dates of absence meet the eligibility criteria, HMRC will reimburse you £191.70 - or two weeks’ SSP at £95.85 p.w. This payment amount is claimable per employee who meets the criteria.
Note. If you pay your employees more than the rate of SSP during any period of sickness absence, e.g. 50% of normal pay, you will not be able to claim the excess amount from HMRC.
Record-keeping requirements
You must retain records of all SSP that you’ve paid to an employee and any SSP reimbursement payments that you wish to reclaim from HMRC. This record should include:
- the dates the employee was off sick
- which of those dates were qualifying days for SSP - in coronavirus-related sickness absence situations, there are no qualifying days; in all other cases SSP commences on the fourth day of sickness absence
- the reason the employee gave for being absent from work, i.e. they had symptoms of coronavirus, live with someone displaying symptoms of coronavirus or was shielding on medical advice; and
- the employee’s NI number.
Tip. These records must be retained for a minimum of three years from the date you receive the reimbursement payment.
For further information on reclaiming SSP from HMRC, visit http://tipsandadvice-business.co.uk/download (CD 21.18.02).