A new online service will launch on May 26 for small and medium-sized employers to recover Statutory Sick Pay (SSP) payments they have made to their employees, the Government has announced.
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 May 26. This means they will receive repayments at the relevant rate of SSP that they have paid to current or former employees for eligible periods of sickness starting on or after March 13, 2020.
Therese Coffey, Secretary of State for the Department of Work and Pensions, said: “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 February 28, 2020 and they had fewer than 250 employees before the same date. The repayment will cover up to two weeks of SSP, and is payable if an employee is unable to work because they fit one of the following categories:
- they have coronavirus
- they are self-isolating and unable to work from home
- they are shielding because they have been advised they are at high risk of severe illness from coronavirus
To prepare to make their claim, employers should keep records of all the SSP payments that they wish to claim from HMRC. Further guidance is available on gov.uk.
The current rate of SSP is £95.85 per week. For the period March 13, 2020 to April 5, 2020 the SSP rate was £94.25 per week.
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
Employees do not have to provide a doctor’s fit note in order for their employer to make a claim under the scheme make a claim.
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 April 16.
To make a claim, follow this link.