The UK Government regularly reviews statutory payment rates to ensure alignment with inflation and economic changes. For employers and employees alike, staying informed about the latest Statutory Sick Pay (SSP) rates is crucial. If you’re a small business owner, ensuring compliance with SSP regulations is a key part of managing your payroll responsibilities. This blog outlines the updated SSP rates for the current year and highlights how professional payroll services for small businesses can simplify the process.
What is Statutory Sick Pay (SSP)?
Statutory Sick Pay (SSP) is a legal entitlement for eligible employees who are unable to work due to illness. Employers are responsible for paying SSP, which provides a financial safety net for workers during periods of sickness.
Eligibility for SSP
To qualify for SSP, employees must:
- Be classified as an employee and have undertaken some work for their employer.
- Earn at least £123 per week (before tax).
- Have been off work sick for at least four consecutive days (including non-working days).
Employees do not need a doctor’s certificate for the first seven days of sickness but must provide one after this period.
Updated SSP Rates for the Current Year
Effective from 6th April 2024, the SSP weekly rate has increased from £109.40 to £111.50. This change reflects inflationary adjustments and ensures support for employees during times of illness.
Key Details
- The new rate applies to employees eligible for SSP for one or more qualifying days after 6th April 2024.
- Employers must pay SSP for up to 28 weeks per illness.
- SSP is subject to tax and National Insurance contributions.
Challenges for Small Businesses in Managing SSP
Calculating SSP and staying compliant with HMRC regulations can be time-consuming, particularly for small businesses with limited administrative resources. Payroll mistakes could result in fines or strained employee relationships.
By outsourcing to specialized payroll services for small businesses, you can ensure accuracy, compliance, and efficiency in managing SSP payments.
Why Choose Professional Payroll Services for SSP Management?
Outsourcing payroll ensures that your business complies with SSP regulations and streamlines the entire process. Here’s how it helps:
- Accuracy – Eliminates errors in SSP calculations, reducing compliance risks.
- Time-saving – Frees up your time to focus on business growth rather than administrative tasks.
- Compliance Support – Ensures adherence to the latest SSP rules and regulations.
- Cost-effective – Reduces the need for in-house payroll staff or additional training.
At Lioness Business Group, we offer tailored payroll services for small businesses designed to handle SSP intricacies, ensuring your employees are paid correctly and on time.
FAQs About SSP Rates and Payroll Management
1. How are SSP rates calculated?
SSP is calculated based on an employee’s qualifying earnings and is paid for each qualifying day they are off work. The weekly rate for the current year is £111.50, divided by the number of qualifying days in the week.
2. What happens if an employee doesn’t qualify for SSP?
If an employee doesn’t meet SSP criteria, they may be eligible for other support, such as Employment and Support Allowance (ESA). Employers should provide employees with an SSP1 form to claim this benefit.
3. Can I reclaim SSP costs as a small business owner?
The Coronavirus Statutory Sick Pay Rebate Scheme, which allowed employers to reclaim SSP costs, has ended. Currently, employers bear the cost of SSP.
4. How can payroll services help with SSP compliance?
Professional payroll services ensure accurate SSP calculations, timely payments, and compliance with HMRC regulations. They also provide guidance on employee entitlements and keep track of updates to statutory rates.
Take the Stress Out of Payroll Management
Managing SSP compliance can be daunting, but it doesn’t have to be. With Lioness Business Group’s payroll services for small businesses, you can rest assured that your payroll processes are accurate, efficient, and compliant. Contact us today to learn how we can support your business.
