Sick Pay Guide for Employers

Keeping records

You must keep records of:

  • all dates of employee sickness lasting for four or more days in a row, including for employees who are under 16 years old
  • all payments of SSP you make during each PIW
  • form SSP2 Record Sheet, is available on the Employer CD-ROM or from the Employer Orderline 08457 646 646 to help you keep a record of your payments

so that HMRC can check that your employees are receiving their proper SSP entitlement.

How long to keep records

Keep all documents and records for three tax years (6 April to 5 April) following the end of the tax year to which they relate.

Employers who choose to opt out

Employers who have chosen to opt out of fully operating the SSP scheme must be able to show records of:

  • all dates of employee sickness lasting four or more days in a row, and
  • all payments of earnings or occupational sick pay (OSP) you make during each PIW, for example your normal pay or OSP records so that HMRC can check that your employees are receiving their proper SSP entitlement or the equivalent in earnings.

Form P11
(or substitute)

For each week or month that you pay SSP to your employee and also make a recovery, complete column 1f on form P11 Deductions Working Sheet or computerised equivalent, and include the SSP in the gross pay in column 2.

Form P12
(Simplified Deduction Scheme)

If you operate a Simplified Deduction Scheme and are recovering some, or all, of the SSP you have paid, record the whole of the amount of SSP you pay each tax month on your employees’ forms P12. At the end of the tax year send the completed P12 and P37 (which shows the number of Deduction Working Sheets enclosed, and is signed and dated by you) to the HMRC office that deals with your PAYE.

Form P14
(or substitute)

At the end of the tax year you need only record on form P14 all SSP paid to each employee for all tax months where you recovered some, or all, of that SSP.

If it is easier for you to record all SSP paid in all tax months, instead of just in the tax months where you made a recovery, you can choose to do that.

Form P35
(Employer’s Annual Return)

Enter the total amount of SSP you have recovered during the tax year in the ‘SSP recovered’ box. If you have received any payment from HMRC enter the amount in the ‘Funding received from HMRC’ box. You need only record the amount of SSP recovered and any NICs compensation on form P35.

For more information, go to www.hmrc.gov.uk/payrollsoftware

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