A new online service will be launched on 26 May for small
and medium-sized employers to recover Statutory Sick Pay
(SSP) payments they
have made to their employees, the government announced
today (19 May 2020).
The Coronavirus
Statutory Sick Pay Rebate Scheme was announced at
Budget as part of a package of support measures for
businesses affected by the COVID-19 outbreak.
This scheme will allow small and medium-sized employers,
with fewer than 250 employees, to apply to HMRC to recover
the costs of paying coronavirus-related SSP.
Employers will be able to make their claims through a new
online service from 26 May. This means they will receive
repayments at the relevant rate of SSPthat they have paid to
current or former employees for eligible periods of
sickness starting on or after 13 March 2020.
Secretary of State for the Department of Work and Pensions,
, said:
We are committed to supporting Britain’s small and medium
businesses through this pandemic with a comprehensive
package of support.
This rebate will put money back in the pockets of
millions of employers, ensuring they can hit the ground
running as the economy re-opens.
Angela MacDonald, HMRC’s Director General of Customer
Services, said:
Our teams have worked hard to deliver this scheme for
employers and their employees to ensure they get the
support they need. We want employers to be secure in the
knowledge they will receive help as they care for their
staff during this difficult period.
Employers are eligible if they have a PAYE payroll scheme
that was created and started before 28 February 2020 and
they had fewer than 250 employees before the same date.
The repayment will cover up to 2 weeks of SSP and is payable if an
employee is unable to work because they:
- have coronavirus; or
- are self-isolating and unable to work from home; or
- are shielding because they’ve been advised that they’re
at high risk of severe illness from coronavirus
The current rate of SSP is £95.85 per week[1].
Employers can choose to go further and pay more than the
statutory minimum. This is known as occupational or
contractual sick pay.
Where an employer pays more than the current rate
of SSP in
sick pay, they will only be able to reclaim
the SSP rate.
The scheme covers all types of employment contracts,
including:
- full-time employees
- part-time employees
- employees on agency contracts
- employees on flexible or zero-hour contracts
Other SSP eligibility
criteria apply.
Connected companies and charities can also use the scheme
if their total combined number of PAYE employees is fewer
than 250 on or before 28 February 2020. Employees do not
have to provide a doctor’s fit note for their employer to
make a claim under the scheme.
Employers can furlough their employees who have been
advised to shield in line with public health guidance and
are unable to work from home, under the Coronavirus Job
Retention Scheme. Once furloughed, the employee should no
longer receive SSP and would be
classified as a furloughed employee. Where an employee has
been notified to shield and has not been furloughed, the
rebate will compensate up to 2 weeks of SSP from 16 April 2020.
[1] For the period 13 March 2020 to 5 April 2020
the SSP rate was £94.25 per
week
