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. In MDP, you can now create SSP for employees and this will help you auto calculate the SSP amount based on how many days they are sick and based on their previous earnings.
Auto Calculation Logic:
To use the automated calculator, the employee should have got at least one payroll in the system previously. The system will use the last 8 payments to calculate their average weekly earnings (8 if weekly, 2 if monthly, 4 if fortnightly).
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.
Steps to create SSP:
If you want to setup SSP for the particular employee, you can go to Employees screen, search for an employee, go inside employee record and Click "Add" in Statutory Payments widget.
You can click "Add Statutory Payment" and select "statutory sick pay" from the dropdown to add it.
In order to auto calculate the SSP amount for each payment, you would have to select the "Sickness Start Date", "Sickness End Date" and "Working Days" (Number of days employee contracted to work in a week) and click "Calculate".
Then based on above mentioned calculation (Auto calculation Logic), system will calculate the average daily earnings and compute the total number of SSP days to pay in each period and total SSP amount😊
Note: The working days are used for the SSP calculation so important these are selected correctly.
If you want to see how SSP daily rate is calculated, you can go to the next tab - SSP Daily Rate Calculation and see that as well😊
Finally, if you are happy with it, you can click the "Save" button, it will then create the SSP item for this employee and add the SSP pay item as a one-off pay item in the particular period the worker is off sick
Time Capture screen:
Salary will not be adjusted in this case, you would have to manually adjust the salary if it needs to be done. The system will only add Stat payment for the specific period😊
When you download the payslip, it will show the number of days the stat payment is created for in that pay period with the amount.
Validations:
You will only be able to create Stat payment for the 28 weeks maximum. The system will throw error if it crosses more than 28 weeks.
You will not be able to create SSP if the date falls in two different tax years. You will only be create SSP for that particular tax year at the moment 😊 If you want to create it across two tax years, you would have to create two different stat payments one for the current tax year and another one for next tax year.
If you try to create the SSP for the closed period's date, system will show you the warning and ask if you want to include it in current period. If you accept it, then it will add that pay item to the current period.
Hope this article helps you to create the SSP for the employee😊 Please reach out to support if you do have any questions!