HMRC allow SMEs to reclaim SSP they have paid to employees who are self-isolating because of Coronavirus (COVID-19). You cannot reclaim Statutory Sick Pay (SSP) if your employee is off sick for another reason.
The weekly rate for Statutory Sick Pay (SSP) is £95.85*, subject to HMRC rules. If you’re not using payroll software, you can calculate the SSP you may receive by using HMRC SSP calculator:
Using the above example and assuming that the employee is entitled to SSP for 10 days out of 13 working days taken off, the payroll run would look as follows:
Gross Pay = £1,967.50
SSP = £188.50
Total Pay = £2,156
PAYE Tax = £185.17
Employee NI = £149.82
Employer NI = 172.29
Net Pay = £1,821.01
The Chart of Nominal Account shows:
The Chart of Accounts now shows the correct balances and the PAYE/NI liability due to HMRC after reclaiming SSP:
The above scenario is shown in the example below, as you can see the PAYE (2210) account balances to Zero:
- Figures are correct at the time of publication.