Statutory Sick Pay - Stealth Cost to Small Business
From 6 April 2014, the Government has somewhat slipped under the radar a change to the Statutory Sick Pay (SSP) rules, which basically abolish the SSP Percentage Threshold Scheme. The impact of this change is that businesses will no longer be able to claim any SSP compensation from the government where an employee is entitled to SSP.
This will mean that going forward, employers will have to fund the cost of SSP to its employees (of £87.55) itself. The real impact being that employers could end up in a position where they will be required to pay for SSP for an absent employee, while also potentially incurring additional costs on either casual staff, or temporary workers, to fill the gap left in its workforce.
Importantly claims can still be made for the years up to 5 April 2014, but even this will be removed on 5 April 2016.
It will therefore be important that employers are well informed on its employees’ rights to SSP, and to also consider making provisional costs for covering their absence.
As always robinson+co are here to help and should you require any further guidance, please contact our Tax Partner, Victoria Bishop on 01900 603623 or email to firstname.lastname@example.org