When a worker is off sick, they are entitled to Statutory Sick Pay (SSP). The amount they are entitled to is set by government criteria. You will no longer have to calculate this manually outside the system! In MDA you can now create SSP for Contactor and CAE workers through our new automated calculation.
To use the automated calculator, the worker will require at least one ‘with invoice’ payroll. The system will use the last 8 payments to calculate their average weekly earnings.
Note: Pay intervals are also considered, for example if a worker has only been paid 4 times but has 2 pay intervals on each payroll, this will equal to 8 payments.
The average weekly earnings are then multiplied by 80%. This will then compare the result against the SSP rate (currently £123.25). The worker will receive the lower of the two amounts.
We also have the function to calculate holiday pay on top of the SSP.
Step by step guide:
1. Go to Payroll > Preparation > Statutory Payments.
2. Click create.
3. Select worker and SSP. Click auto calculate.
4. Select sickness start/end date and working days. If you also want to accrue holiday pay on top of this you can toggle this on. Click calculate.
Note: The working days are used for the SSP calculation so important these are selected correctly.
5. You will then be given the breakdown of SSP and if you have selected ‘calculate holiday pay’, you will see breakdown of Holiday Pay calculation.
6. Select when you would like the holiday pay.
The holiday pay will show in the accrued holiday pay screen. If you select either option, this will automatically set it to ‘pay out’.
If you don’t select an option, you can decide when to select the amount to pay out from the accrued holiday pay.
7. Follow the usual payroll workflow to pay out the SSP.
Auto Calculation of Holiday Pay
During the auto calculation of SSP, we also have the option to auto calculate the holiday pay for the SSP.
The system will look at the last 52 weeks Basic & Additional Taxable Wage and multiply this average pay by the holiday pay percentage. This is then divided by the number of working days to arrive at a daily holiday pay rate.
Note: The holiday pay percentage is taken from the annual leave entitlement from the worker’s assignment. If the worker has more than one assignment, the assignment with highest annual leave entitlement will be used.
The holiday pay out will follow the same workflow as accrued holiday pay. The amounts will be available to pay out from that screen (Payroll > Preparation > Accrued Holiday Pay).
Select ‘process holiday with SSP’ for the amount to go into pending pay out and all will get processed with the first week of SSP payment.
Select ‘pay out as single payment’ this will then go into pending pay out and all will get processed with the first payroll ran.
If you choose to leave these options, the holiday pay accrued amount will still get created however you can go to the accrued holiday pay screen and select the amounts to pay out before running the payroll you wish to pay out on.
Note: If you have more than one week of SSP and holiday pay, leaving the automated pay out option will create separate holiday pay line items