Sick pay refunds reinstated
Generally, you cannot reclaim the cost of the statutory sick pay (SSP) you pay to your employees.
However, during the pandemic, smaller employers were permitted to reclaim up to 14 days of the SSP paid to employees who were absent from work for a valid covid-related reason. This SSP refund scheme closed on 30 September 2021.
Following the surge in covid cases late last year, a new SSP refund scheme was opened that covers up to 14 days of SSP paid for each employee who was on sick leave due to covid on or after 21 December 2021. Any SSP claimed under the previous refund scheme doesn’t count towards the 14 days permitted per employee under the new scheme.
To claim a refund of SSP under the new scheme, your business must be based in the UK and have:
- fewer than 250 employees on 30 November 2021;
- a PAYE scheme set up by 30 November 2021; and
- paid the covid-related SSP to the employees before the refund is claimed.
You also need to record the following data for each employee included in a SSP refund claim:
- the amount of SSP paid and the amount reclaimed;
- the dates the employee was off sick
- which of those days the employee would normally work;
- the reason for absence from work being due to COVID-19;
- the employee’s national insurance number.
The covid-related SSP can be paid to an employee from the first day of absence from work, as there is no three-day waiting period for covid-related SSP.
| Action Point! |
|---|
| We can help you with SSP calculations and refund claims |
