SSP Absence

If you have selected the Use Full SSP Processing on the Set Options form in Payroll, you can record absence details to use as the basis for calculating Statutory Sick Pay (SSP).

You must ensure you have created an SSP type payment profile in the Payroll - Maintenance - Payment Profile command. The application can then automatically calculate an employee's SSP for the period and maintain the relevant history.

To record SSP absence, you use the SSP Absence command on the Stat. Payments submenu of the Action menu associated with either the Payroll Processing form.

When using the Payroll application for the first time, it may be necessary for you to enter details about previous PIWs using the To-Date command on the Action menu associated with the Payroll Processing form.

SSP absence records are recorded against a diary. Days are colour-coded and the key shows the difference between Qualifying, Non-qualifying and Closed Absence (closed absence relates to paid SSP absence days that cannot be edited or deleted). These are determined by the SSP qualifying days profile assigned to the employee. The SSP Diary form uses a character to identify each classification of absence as follows:

A indicates a non-PIW day of absence
N indicates a non-qualifying sickness day
P indicates that SSP has been paid for the day (this is after a payroll calculation)
S indicates a qualifying sickness day that is payable (but has not yet been paid)
W indicates a waiting day
X indicates a qualifying sickness day but for which SSP has been withheld.

When is SSP Calculated?

When you use the Calculation command for the Payroll application, the application takes into account the absence days up to and including the usual payment date for the pay period which is identified in the Usual Pay Date on the General tab of the Calendar form. SSP is then calculated and paid, where applicable, for these days.

PIW and Linking PIWs

Incapacity of four or more calendar days is classed as a period of incapacity for work (PIW). All days of incapacity—including weekends, holidays or any day an employee does not normally work—counts towards these four days. SSP is not payable for the first three qualifying days (QDs) in a PIW. These are known as waiting days and are not always the first three days of incapacity. If PIWs are linked (that is, the gap between them is 56 days or less), then there are no further waiting days to be served in the second or subsequent period of absence.

When you create a new SSP absence record, the application automatically detects the status of the absence, which will be one of the following:

Status	Description
New PIW	A new absence of at least four calendar days.
Linked PIW	Absence of at least four calendar days that is linked to a previous PIW. The start date of the current absence is 56 days or less than the end date of the previous PIW.
Non PIW Absence	An absence of three days or less. SSP is not payable and these cannot be included for linking PIWs.

Extending the Period of Absence

The application automatically identifies the need to extend the period of absence when you create a new absence day adjacent to an existing PIW. The message 'Adding To End Of Previous Absence' appears when you use the Create New Absence command for an adjacent date. You can also extend the period into the future.

Average Pay and Overrides

Provided there is sufficient payment history for the employee, the application automatically calculates the average pay needed to establish the rate of SSP payable. If insufficient history is available to do this, the application displays a message to this effect. You can override the amount automatically calculated by entering a value in the Average Pay Override box.

Special Circumstances and Conditions

There are certain conditions and circumstances which affect the way in which an employee is treated for SSP entitlement and can in some cases result in SSP being withheld. Some of these are detected by the application automatically. For others, you select them from the drop-down list box under Special Circumstances on the Period of Absence form.

Circumstances Detected by the application

Circumstance	Further Details
Has not attended work at all	When the first day of absence is the same as the employee’s start date, you are asked ‘Has the employee attended work at all?’. If you answer ‘no’, SSP is not payable and will be marked as withheld. If you answer ‘yes’, you are informed that SSP is not payable for the first day and you must re-enter the start day as the next day.
Linking Letter Start Date	Linking Letter Start Date If the PIW start date is less than or equal to a linking letter’s start date (as defined in the Linking Letter Start Date box on the To-Date Details tab of the employee’s To-Date form), no SSP is due. A warning to this effect is given and the application automatically selects ‘General Withhold’ as a special circumstance with the comment ‘Linking letter applies’.
Max Weeks SSP Exceeded	If an employee’s sickness exceeds the maximum of 28 weeks (in a single or linked PIW), further SSP is withheld and the comment ‘Max Weeks SSP’ is assigned to the record.
Linking Period Limit	If the employee has a series of linked PIWs that run for more than three years, further SSP is withheld and the comment ‘Max. linking period reached’ is assigned to the record.
Employee does not pay NI	If an employee does not pay NI (category letter ‘X’), then SSP is not payable and the comment ‘Employee does not pay NI’ is assigned to the record.
Linked PIWs not entitled to SSP	If a linked PIW is not entitled to SSP (for example, because the original PIW was also not entitled), SSP is withheld for the new PIW and the comment ‘Linked PIW not entitled to SSP’ is assigned to the record.

Circumstances Selected by the User

Circumstance	Further Details
Employee deceased	Enter a comment and date. SSP is paid up to and including the date on which the employee died and SSP is then withheld from thereon.
Contract Expired/Ended	Enter a comment and date. SSP is withheld from the date entered SSP and if the date is on or before the start of the PIW, the employee is not entitled to any SSP for that entire PIW.
Contract is for 3 months or less	You can enter a comment, but no date is required.
Taken into legal custody	Enter the date on which that employee was taken into custody. SSP is withheld from that date and if the date is on or before the start of the PIW, the employee is not entitled to any SSP for that entire PIW.
Trade dispute	Enter the date on which that employee started a trade dispute with the company. SSP is withheld from that date and if the date is on or before the start of the PIW, the employee is not entitled to any SSP for that entire PIW.
Outside European Economic Area	You can enter a comment, but no date is required.
General Withhold	For any other circumstances for which SSP is to be withheld, enter a comment and date. SSP is withheld from that date and if the date is on or before the start of the PIW, the employee is not entitled to any SSP for that entire PIW.

When a special circumstance is selected, you are reminded to produce a form SSP1.

SSP Absence Entries

Box	Description
From and To	Dates that determine the period of absence. These will have default entries if you selected one or a range of days on the SSP Diary form beforehand.
Reason	A reference that identifies the reason for absence. You can select from a list. Reasons are defined using the Absence Reasons command on the Maintenance submenu in the Personnel application.
Notification	The name of the person notified of the absence.
Method	A description of the method by which notification was made.
Certification	An option that determines whether the absence is covered by a medical certificate.
Exp Date	The date on which a certificate expires. This only applies if the Certification option is selected.
Average Pay	The average pay used to determine the SSP rate calculated by the application, based on the employee’s pay history.
Average Pay Override	The average pay used to determine the SSP rate can be overridden by entering a value in this box. If left blank, the average calculated from the employees pay records will be used.
Special Circumstances Reason	You normally pay SSP for the appropriate qualifying days of absence and stop paying when the employee returns to work. However, certain special circumstances affect the way in which the employee is treated regarding the entitlement to or payment of SSP. If such a circumstance applies, you can select a reason from the list and, depending on the reason chosen, enter comments and a date. The options available are: None, Has not attended work at all, Employee deceased, Contract expired/ended, Contract is for 3 months or less, Taken into legal custody, On trade dispute, Outside European Economic Area or General Withhold. Refer to the official document Statutory Sick Pay Manual for employers, CA30 for further guidance.

Actions

The following commands are available on the Action menu associated with the Diary form:

Use this command	To
Previous Year	Change the diary to show the previous year.
Next Year	Change the diary to show the next year.
Previous Month	Scroll the diary back by one month.
Next Month	Scroll the diary forward by one month.
Absence Days	Display a summary of the absence days for the employee including PIW, sickness date, qualifying indicator, daily rate, payment date and period. You can also mark a record for withholding of SSP and enter an explanatory comment.
Create New Absence	Create a new SSP absence record.
Absence Maintenance	View and amend absence records already recorded for the employee.