In any business it’s natural that employees will occasionally require time off due to factors such as sickness, maternity, paternity, or adoption leave.
As an employer, you must determine whether your employees qualify for the relevant statutory payment to cover their absence, and then make the appropriate payment to them.
Statutory Sick Pay (SSP)
This is paid to employees who have been off sick for four or more consecutive working days and has earned the appropriate amount of wages in the eight weeks prior to their sickness to qualify. SSP is paid for a maximum of 28 weeks.
Statutory Maternity Pay (SMP) and Statutory Adoption Pay (SAP)
Maternity or adoption pay is paid to mothers or adopters at a rate of 90% of their earnings for the first six weeks. After the initial 6 weeks, SMP/SAP will be paid for up to 33 weeks.
Statutory Paternity Pay (SPP)
SPP can be claimed by a partner for one or two consecutive weeks, providing that their earnings and length of service meet the relevant criteria.
Reclaiming Statutory Payments
When making statutory payments to your employees, you are entitled to reclaim some of them back from HMRC. This will be done by reducing the amount of PAYE tax and National Insurance you pay.
In some cases, advanced funding can also be requested if your PAYE liabilities are too low to recover the statutory payment being made.
At Easy PAYE, our expert team will take care of all aspects of statutory payments for you, ensuring that you remain fully compliant, whilst minimising the impact on your business.
For further information about our Statutory Payments services, or to discuss your requirements further, please get in touch – our skilled and experienced team are always happy to help!