Sick Pay guide for Employers

What do I have to do?

An employee must satisfy a number of qualifying conditions to be entitled to Statutory Sick Pay from you. The following guidance and tables will help you decide if they are entitled. You, as the employer, must decide if Statutory Sick Pay is payable and how much you are liable to pay. The Employers' Helpline can give you advice but cannot make a decision for you.

What does my employee have to do?

Tell you that they are sick, within the time allowed.

Can I get anything back?

This will depend on your total gross Class 1 NIC liability, and the amount of Statutory Sick Pay you have paid, in a particular tax month. Opting out of the Statutory Sick Pay scheme does not prevent you from recovering Statutory Sick Pay if you qualify. For more information see Recovering Statutory Sick Pay.

Where does the money come from?

If you can get some money back, use the money you have deducted from your employees for

• PAYE tax
• Class 1 National Insurance contributions
• Student loan deductions
• Construction Industry Scheme deductions.

and the employer's share of Class 1 NICs, which you are due to pay over to the Inland Revenue.

You may also need to use this money to pay tax credits and other statutory payments. Please make sure you have enough to cover all the money you are able to get back.

If not, you can use the money due next tax month to get back any balance owing. If you need the balance back more quickly see Fast recovery from your Accounts office.