An SSP1 form is a document that must be issued by an employer when an employee is not eligible (or no longer eligible) for statutory sick pay (SSP). The SSP1 forms can then be used by the employee to claim Universal Credit or Support Allowance.
In other words, The SSP1 form is a document used in the United Kingdom to notify an employer of an employee's entitlement to Statutory Sick Pay (SSP). The form is completed by the employee and provided to the employer, who then uses the information to calculate and pay SSP to the employee. The form includes information such as the employee's name, National Insurance number, and the dates of the employee's incapacity for work. It also includes information such as the dates of the employee's incapacity for work, and the employee's rate of pay, as this is used to calculate the amount of SSP that the employee is entitled to.
What is Statutory Sick Pay (SSP)?
Statutory Sick Pay (SSP) is a payment made to employees by their employer in the United Kingdom when they are unable to work due to illness or injury. To be eligible for SSP, an employee must have been off work for at least four consecutive days and earn at least £120 per week.
Currently, the rate of SSP is £96.35 per week, and it is paid for up to 28 weeks. The payment is made by the employer, who can then claim it back from the government if they meet certain criteria.
Employers are required by law to pay SSP to their eligible employees, and failure to do so can result in penalties. SSP is intended to provide a basic level of financial support to employees who are too ill to work, helping to ensure they can meet their basic living expenses while they recover.
The Statutory Sick Pay (SSP) system in the UK is an integral aspect of employee welfare and employer responsibilities. Understanding the SSP1 form, a crucial component of this system, is essential for both employers and employees. In this first part of the article, we delve into the purpose of the SSP1 form, its relevance, and key procedures for its utilization.
Purpose of the SSP1 Form
The SSP1 form plays a pivotal role when an employee is not entitled to Statutory Sick Pay (SSP) or when their SSP is ending. Employers must complete this form under these circumstances. This situation can arise for various reasons, such as:
End of SSP Eligibility: An employee's SSP eligibility ceases after a specific duration, typically 28 weeks.
Non-Qualification for SSP: Certain conditions disqualify an employee from receiving SSP, like being in police custody on the first day of sickness or working outside the EU where the employer is not liable for NI contributions.
Eligibility for SSP
SSP serves as the minimum amount an employer is obligated to pay an employee who cannot work due to illness and meets specific criteria. To be eligible for SSP, an employee must:
Have an employment contract.
Have performed some work under this contract.
Have been sick for 4 or more days consecutively, including non-working days.
Earn an average of at least £123 per week.
Provide notice and proof of illness as required.
Notably, employees with less than 8 weeks of earnings still qualify for SSP, and the amount can be calculated using available tools like the sick pay calculator.
Procedure for Completing the SSP1 Form
Employers can either complete the SSP1 form online, print it, or fill it in by hand after printing. The completed form must be given to the employee, who can then use it to support their application for benefits like Universal Credit or Employment and Support Allowance (ESA).
Timelines for Submission
The timing of submitting the SSP1 form is critical:
If the employee’s SSP ends unexpectedly while they are still sick, the employer must send the SSP1 form within 7 days of cessation.
If the SSP is expected to end before the employee's sickness does, the form should be sent on or before the beginning of the 23rd week.
Special Considerations in Case of Termination or Insolvency
If an employee’s contract is terminated during their sick leave or if the employer ceases trading or becomes insolvent, specific rules apply regarding the SSP1 form and payment of SSP. In these cases, the employer still has the obligation to provide the SSP1 form for the employee to claim ESA.
SSP Amount and Payment Duration
The standard rate of SSP is £95.85 per week, payable up to 28 weeks. It's paid for the days an employee usually works and starts from the fourth 'qualifying' day. However, for the first 3 'waiting days,' SSP is generally not paid unless the employee has been off sick and receiving SSP within the last 8 weeks.
Notification Requirements
Employees are required to notify their employers of their sickness to qualify for SSP. This notification must be within the timeframe specified in their employment contract or within 7 days if no specific period is stipulated. Employers cannot demand in-person notification or on a special form. They are also not entitled to ask for proof of sickness until the employee has been off for 7 days.
Self-Certification and Fit Notes
For absences of 7 days or less, employees are not required to provide proof of illness. Upon return, they may be asked to self-certify their sickness. For absences extending beyond 7 days, a sick note (fit note) from a GP or hospital doctor is required. The fit note outlines the nature of the illness and the prognosis period.
COVID-19 Special Provisions
The UK Government has implemented special provisions in response to the COVID-19 pandemic. Under these, employers can pay SSP from the first day the employee was off work if they were unable to work due to coronavirus or were self-isolating. However, this is applicable only for sickness or self-isolation periods starting after 13 March 2020.
Reclaiming SSP for COVID-19
Employers may reclaim up to 2 weeks' SSP paid to employees who were off work due to coronavirus under specific conditions. This includes cases where the employee's sickness started on or after 13 March 2020, and the employer's PAYE payroll scheme was in place before 28 February 2020, with fewer than 250 employees.
In conclusion, the SSP1 form is a vital tool in the SSP framework, ensuring that employees who are not eligible for SSP or whose SSP is ending can seek alternative benefits. Employers must be vigilant about the criteria, procedures, and timelines associated with the SSP1 form to comply with legal requirements and support their employees effectively. The next part of this article will delve deeper into the complexities and nuances of the SSP1 form, providing further insights for UK taxpayers seeking comprehensive information on this topic.
Why Do We Need the SSP1 Form?
There are several reasons why an employee may not be eligible for statutory sick pay and may require the issuance of an SSP1 form;
● Employees have already received the maximum 28 weeks of SSP.
● Earning less than qualifying income on average (£116 per week).
● When an employee receives statutory maternity pay.
Completing the SSP1 Form
Employers have two options to complete the SSP1 form: they can either download, fill it in on screen, and print it, or download, print, and complete it by hand. Once completed, it must be given to the employee, who can then claim benefits like Universal Credit or ESA (Employment and Support Allowance).
Who Uses the SSP1 Form and When?
The SSP1 form is necessary when an employee does not qualify for SSP or their SSP is about to cease. This form supports the employee's application for benefits. It is crucial for determining their eligibility for additional financial support during periods of sickness.
Timelines and Procedures for Sending the SSP1 Form
The employer's responsibility in sending the SSP1 form depends on the circumstances:
Ending SSP: If SSP ends unexpectedly while the employee is still on sick leave, the employer must send the SSP1 form within 7 days of cessation. If the employer anticipates that the employee will be off sick for a longer period than their SSP coverage, the SSP1 form should be completed on or before the beginning of the 23rd week.
Non-Qualification for SSP: If the employee does not qualify for SSP, the employer must send them the SSP1 form within 7 days of the employee going off work sick.
Additional Considerations in Specific Situations
Contract Termination During Sick Leave: If an employee's contract is terminated while they are still sick, they must receive a completed SSP1 form to claim ESA.
Employer Insolvency: If the employer becomes insolvent, HMRC will pay SSP for any sick employee, provided the employment contract hasn’t ended. The employer or liquidator is still responsible for providing SSP1 for ESA claims if the employee’s incapacity continues post-insolvency.
Rules on SSP
Understanding when to complete an SSP1 form is crucial for employers to meet statutory obligations and support their employees. The rules around SSP
include:
Employee Entitlement: Employees are eligible for SSP if they have been ill for four or more consecutive days, earn at least £120 per week, and have notified the employer of their illness within the required time.
Linked Periods of Sickness: Regular sickness absences can be considered linked if they last four or more days each and are eight weeks or less apart.
Exceptions: Certain conditions like receiving Statutory Maternity Pay, being in custody or on strike, working outside the EU, or having received ESA within 12 weeks of starting work disqualify an employee from SSP.
Notification and Proof of Illness
Notice Requirement: Employees must notify their employer of their illness within the timeframe specified in their employment contract or within 7 days where no timeframe is set.
Self-Certifying and Fit Notes: For absences of 7 days or less, employees can self-certify their illness. For longer absences, a fit note from a GP is required.
Special SSP Provisions Due to Coronavirus
The UK government has introduced special provisions for SSP in response to the COVID-19 pandemic:
SSP from First Day: Employers can pay SSP from the first day an employee is off work due to COVID-19, provided certain conditions are met.
Reclaiming SSP: Employers may reclaim up to 2 weeks of SSP paid to employees for coronavirus-related absences. Record-keeping for such payments is essential for a period of 3 years.
In summary, the SSP1 form is an essential document in the SSP system, facilitating employees' transition to other forms of financial support when they are not eligible for SSP or when their SSP ends. Employers must be diligent in understanding and following the rules and procedures associated with SSP1, including special considerations in scenarios like termination during sick leave or employer insolvency. The next part of this article will continue to provide more insights into the SSP1 form and its implications for UK taxpayers.
Special SSP Provisions Due to Coronavirus
The coronavirus pandemic prompted the UK Government to introduce special provisions to the SSP system to support both employers and employees during this challenging time. These measures are particularly relevant for those unable to work due to COVID-19 or required to self-isolate:
SSP from First Day: Employers are allowed to pay SSP from the first day an employee is off work due to COVID-19, provided they have been unable to work for at least 4 days and the period of sickness or self-isolation started after 13 March 2020. This is a deviation from the usual practice where SSP is paid from the fourth qualifying day.
Reclaiming SSP: Employers can reclaim up to 2 weeks’ SSP paid to employees under certain conditions, such as if the employee was off work due to COVID-19 and the sickness period began on or after 13 March 2020. However, they must have had fewer than 250 employees on 28 February 2020 and have a PAYE payroll scheme in place before that date. Record keeping for SSP payments is essential for reclaiming purposes.
Furloughing Workers Who are Off Sick with Coronavirus
The Coronavirus Job Retention Scheme, designed to help employers keep employees on their payroll by subsidizing up to 80% of their wages, has specific guidelines for sick employees. Those on sick leave or self-isolating should receive statutory or contractual sick pay and should not be treated as furloughed under the scheme. However, once they have recovered, they may be furloughed for any period after they would have returned to work.
Implications for UK Businesses
Understanding and implementing the guidelines around the SSP1 form is essential for UK businesses. The form plays a critical role in ensuring employees who are not eligible for SSP or whose SSP has ended can access other benefits. The process involves:
Completing the Form: Employers can complete the SSP1 form online or by hand. It must then be provided to the employee to support their benefit claims.
Timely Submission: The form must be sent within specific time frames, depending on whether the SSP is ending unexpectedly or if the employee does not qualify for SSP at all.
Special Circumstances: Situations like contract termination during sick leave or employer insolvency require particular attention regarding SSP and the SSP1 form.
Concluding Remarks
The SSP1 form is a crucial element in the UK's statutory sick pay framework, ensuring that employees who are unable to receive SSP are informed of their rights and can seek alternative support. During the coronavirus pandemic, the government's special provisions have further highlighted the importance of adaptable policies in times of crisis. For UK businesses, staying informed and compliant with these regulations is not only a legal obligation but also a demonstration of commitment to employee welfare.
What Happens If I Forget to Give an Employee their SSP1 Form?
Employers have a legal obligation to provide SSP to eligible employees and are responsible for calculating and paying SSP to employees based on the information provided on the SSP1 form. Employers are also responsible for keeping records of SSP payments and must provide employees with a statement of their SSP entitlement if requested.
If you don't give the SSP1 form to your employee within the time allowed, a court can fine you up to £300. If you still fail to provide the relevant form, an additional fine of up to £60 may be imposed for each day you fail to provide it.
Employees are responsible for providing their employer with the SSP1 form as soon as possible after the start of their period of incapacity. They are also responsible for providing their employer with evidence of their incapacity, such as a doctor's certificate if requested.
How to Fill SSP1 Form - A Step-by-Step Guide
Filling out the SSP1 form is a critical task for UK employers when an employee is not entitled to Statutory Sick Pay (SSP) or when their SSP is ending. This comprehensive guide will walk you through each section and question of the SSP1 form, providing insights into possible answers and the information required.
Part A: Employer Information
1. Employer’s Name: Enter the full legal name of your business.
2. Employer’s Signature: The form must be signed by the employer or an authorized representative.
3. Date: Enter the date on which you are filling out the form.
4. Position in Firm: Specify your position within the company (e.g., Manager, HR Officer).
5. Phone Number: Provide a contact number for any follow-up queries.
6. Fax Number: If applicable, include a fax number.
7. Email Address: An email address for electronic communication.
8. Employer’s Address and Postcode: Full postal address of your business.
9. Employer’s Stamp: If your business uses a stamp for official documents, include it here.
Part B: About Your Employee
10. Title: Enter the employee's title (Mr., Mrs., Miss, Ms., or other).
11. Surname or Family Name: The employee's last name.
12. All Other Names in Full: The employee's first and middle names.
13. Address: Full residential address of the employee.
14. National Insurance (NI) Number: The employee's unique NI number.
15. Clock, Payroll, or Employee Number: Any internal reference number used to identify the employee.
16. Tax Reference Number: Also known as the Employee PAYE reference.
17. SSP Payment Details: If you have been paying your employee SSP, mention the start and end dates of the payment. If the payment hasn't ended yet, provide the expected end date.
Part C: Why You Cannot Get Statutory Sick Pay
This part requires selecting the appropriate reason(s) why the employee cannot get SSP. The reasons include:
Employment and Support Allowance received during the last 12 weeks.
Contract of employment has ended or will end soon.
Sickness occurred after the contract ended.
Approaching or exceeded 28 weeks of SSP.
Earnings below the Lower Earnings Limit.
Pregnancy or recent childbirth.
Sickness duration exceeding 3 years.
Involvement in a trade dispute.
Legal custody.
Working outside the UK.
Employment not yet started.
Failure to inform about sickness.
Part D: Employee - What to Do Now
This section is for the employee's reference and outlines the steps they should take if they disagree with the decision not to pay SSP, including contacting HMRC for advice. It also provides information on potential benefit claims and resources for further assistance.
Part E: Further Support Options
The SSP1 form also provides guidance on further support options available to the employee:
Contacting HMRC: Employees can contact HM Revenue & Customs (HMRC) if they believe the decision regarding their SSP eligibility is incorrect. HMRC can provide additional information and guidance on the matter.
Applying for Benefits: Employees may be eligible for other benefits, such as Universal Credit or Employment and Support Allowance (ESA), if they cannot receive SSP. The form provides information on how to apply for these benefits and the use of the SSP1 form in their applications.
Resource Information: The form includes contact details for Jobcentre Plus and other relevant agencies that can assist the employee in understanding their rights and the next steps they can take.
Further Help and Support
If you are unable to apply for benefit online or require additional support, the following contact options are available:
For Universal Credit:
Telephone: 0800 328 5644
Textphone: 0800 328 1344
NGT Text Relay (for those who cannot hear or speak on the phone): 18001 then 0800 328 5644
Welsh Language: 0800 328 1744
Available Monday to Friday, 8am to 6pm.
For New Style Jobseeker’s Allowance:
Telephone: 0800 055 6688
Textphone: 0800 023 4888
NGT Text Relay (for those who cannot hear or speak on the phone): 18001 then 0800 055 6688
Welsh Language: 0800 012 1888
Available Monday to Friday, 8am to 5pm.
For New Style Employment and Support Allowance:
Telephone: 0800 055 6688
Textphone: 0800 328 1344
NGT Text Relay (for those who cannot hear or speak on the phone): 18001 then 0800 055 6688
Welsh Language: 0800 328 1744
Available Monday to Friday, 8am to 5pm.
Completing the SSP1 Form Accurately and Promptly is Vital
It ensures that employees receive the correct information regarding their SSP eligibility and can apply for alternative benefits if necessary. Employers should ensure all data provided is accurate and complete, keeping in mind the employee's circumstances and the specific reasons for SSP ineligibility.
When Does the SSP End?
An employee's entitlement to SSP ends on the earliest of the following dates:
● Employee returns to work
● The expiry date of the medical certificate if another certificate is not obtained
● The employee exhausts his SSP allowance
● Termination of the employee's employment
● The day immediately preceding the start of the maternity leave if the employee is pregnant.
If the employee's right to SSP ends unexpectedly (for example, because he resigns or is imprisoned), you must send him the SSP1 form by mail within seven days.
We Don’t think One of Our Employees is Entitled to Receive SSP. What Happens Next?
You must notify the employee using Form SSP1 and explain your reasons by checking the appropriate box. This form can be found here. If your employee does not agree with your statement, they can submit a claim to HMRC's Statutory Payment Disputes team for a decision - not the Employment Tribunal.
It is important to note that SSP is not a replacement for an employee's full salary and the amount of SSP that an employee is entitled to be capped at £96.35 per week. Additionally, SSP is not available to employees who are not eligible for it, such as those who are self-employed or who have been employed for less than four out of the last eight weeks.
When Should I Issue Form SSP1?
It is important to issue an SSP1 form at the right time. There are two instances where SSP1 forms must be issued when an employee's illness is nearing the end or when they are initially ineligible for SSP.
If an Employee’s SSP is Coming to an End:
● If the SSP ends unexpectedly but the employee is still ill, the SSP1 must be issued within 7 days of the end of the SSP.
● If the SSP is expected to end but the worker is still ill and is expected to be ill beyond the maximum 28 weeks SSP, the SSP1 form must be issued no later than the start of the 23rd week.
If Employee Does not Qualify for SSP:
● The SSP1 must be issued within 7 days of an employee's sick leave.
● The SSP1 form must be issued on the first payday when the worker returns to work.
Despite the limits of SSP, it still plays an important role in supporting employees during periods of illness or injury. Employers and employees alike should be aware of their responsibilities regarding the SSP1 form and the payment of SSP, in order to ensure that employees receive the financial support they are entitled to during difficult times.
In summary, The SSP1 form is a document used in the United Kingdom to notify an employer of an employee's entitlement to Statutory Sick Pay (SSP). This form is completed by the employee and provided to the employer, who then uses the information to calculate and pay SSP to the employee. Both employer and employee have responsibilities regarding SSP and the SSP1 form, and it is important for both parties to be aware of their obligations in order to ensure that employees receive the financial support they are entitled to during periods of illness or injury.
How a Tax Accountant Can Help Employers With SSP in the UK
Handling Statutory Sick Pay (SSP) can be complex for employers in the UK. A tax accountant plays a crucial role in navigating these complexities, ensuring compliance and efficiency. Here's how they assist:
Understanding SSP Regulations
Tax accountants are well-versed in the latest SSP regulations, including eligibility criteria, calculation methods, and documentation requirements. They keep abreast of changes, such as those due to the COVID-19 pandemic, and advise employers accordingly.
Calculating SSP
The calculation of SSP involves considering various factors like average weekly earnings, qualifying days, and waiting periods. Tax accountants accurately compute SSP amounts, ensuring employees receive the correct payments and employers fulfill their legal obligations.
Managing SSP Records
Maintaining accurate and detailed records of SSP payments is crucial for compliance and potential audits. Tax accountants help in organizing these records, ensuring they are complete and readily available when needed.
Completing and Submitting SSP1 Forms
Filling out SSP1 forms can be challenging. Tax accountants assist in accurately completing these forms, particularly in situations where employees are not eligible for SSP, guiding through each section and ensuring timely submission.
Advising on Complex SSP Scenarios
Employers may face complex situations like long-term sickness or termination during sick leave. Tax accountants provide expert advice on handling these scenarios, including the implications for SSP payments and form submissions.
Liaising with HMRC
Tax accountants act as a liaison between employers and HM Revenue & Customs (HMRC), handling queries and resolving issues related to SSP. They can also assist in appealing HMRC decisions if disagreements arise over SSP eligibility or payments.
Training and Support
Tax accountants offer training and support to employers and their HR teams on SSP management. This includes explaining the nuances of SSP policies and procedures and ensuring the internal team is well-equipped to handle SSP matters efficiently.
Integration with Payroll Systems
Incorporating SSP calculations into existing payroll systems can be challenging. Tax accountants assist in integrating these systems, ensuring that SSP payments are processed accurately and on time as part of the regular payroll.
Assessing Impact on Business Finances
Tax accountants evaluate the financial impact of SSP on the business, including the effects on cash flow and overall financial planning. They provide strategic advice on managing these impacts while maintaining compliance.
Guidance on COVID-19 Provisions
The COVID-19 pandemic introduced special SSP provisions. Tax accountants guide employers through these temporary changes, such as reclaiming SSP and understanding the interplay with furlough schemes.
Ensuring Compliance and Avoiding Penalties
Non-compliance with SSP regulations can result in penalties. Tax accountants ensure that employers adhere to all legal requirements, helping to avoid costly penalties and legal issues.
Optimizing Claims and Reimbursements
Tax accountants can advise employers on optimizing claims and reimbursements, such as reclaiming SSP paid for COVID-19 related absences, ensuring that employers take full advantage of available reliefs.
Continual Advisory Services
Tax accountants provide ongoing advisory services, keeping employers informed about changes in SSP legislation and best practices, ensuring that employers are always up-to-date and compliant.
In conclusion, a tax accountant is an invaluable asset for UK employers in managing SSP. Their expertise not only ensures compliance but also optimizes SSP handling, contributing to smoother operations and financial stability. By leveraging a tax accountant's skills, employers can navigate the complexities of SSP with confidence, knowing they are adhering to all legal requirements while effectively supporting their employees.
20 Most Important FAQs on "SSP in the UK"
Q1: Can an employee claim SSP if they have multiple employers?
A: Yes, employees with multiple jobs can claim SSP from each employer, as long as they meet the eligibility criteria with each employer.
Q2: How does SSP work for part-time employees?
A: Part-time employees are eligible for SSP if they meet the eligibility criteria, including the minimum earnings threshold.
Q3: Is SSP taxable?
A: Yes, SSP is subject to usual deductions like tax and National Insurance.
Q4: Can an employer stop paying SSP before 28 weeks if the employee recovers early? A: Yes, SSP should only be paid for the period the employee is off work due to illness.
Q5: How does SSP interact with company sick pay schemes?
A: SSP can be integrated into company sick pay schemes, but it should not be less than the statutory amount.
Q6: What happens if an employee falls sick during annual leave?
A: If an employee is ill during annual leave, they can take it as sick leave and may be eligible for SSP.
Q7: Can employees working abroad claim SSP?
A: Employees working abroad may not be eligible for SSP, especially if their employer is not liable for UK National Insurance contributions.
Q8: What is the role of a 'fit note' in SSP?
A: A fit note from a GP is required to claim SSP if an employee is off work for more than 7 days.
Q9: Can SSP be reclaimed by the employer from the government?
A: Employers could reclaim SSP under certain conditions, especially related to COVID-19, but generally, they bear the cost of SSP.
Q10: What if an employee doesn't have a National Insurance number?
A: Employees without a National Insurance number may still be eligible for SSP, but the employer should verify their eligibility.
Q11: Is there a deadline for SSP claims after returning to work?
A: Employees should inform their employer as soon as possible when they are sick, but there is no specific claim deadline after returning to work.
Q12: How does maternity leave affect SSP eligibility?
A: Employees cannot receive SSP for any period during which they are receiving Statutory Maternity Pay.
Q13: What if an employee refuses to provide a fit note?
A: Employers are not obliged to pay SSP if the employee fails to provide the required proof of illness, such as a fit note.
Q14: How are SSP amounts calculated for irregular earners?
A: For employees with variable earnings, SSP is calculated based on the average earnings over the previous 8 weeks.
Q15: Can an employee work part-time and still receive SSP?
A: If an employee returns to work on a part-time basis, they may no longer be eligible for SSP.
Q16: Are self-employed individuals eligible for SSP?
A: Self-employed individuals are not eligible for SSP.
Q17: What if an employee frequently takes short-term sickness absences?
A: Frequent short-term sickness absences are considered separately for SSP eligibility unless they are part of linked periods of sickness.
Q18: Can SSP be paid if an employee is on a zero-hours contract?
A: Employees on zero-hours contracts can be eligible for SSP, subject to meeting the qualifying conditions.
Q19: How does an employee's resignation affect SSP?
A: SSP entitlement ceases if an employee resigns, and the SSP1 form should be issued within 7 days of the end of SSP.
Q20: What if an employee has more than one period of sickness?
A: Multiple periods of sickness may be 'linked' for SSP purposes if they are each at least 4 days and within 8 weeks of each other.