You may be able to recover some of the statutory sick pay (SSP) you have paid out if you qualify under the Percentage Threshold Scheme (PTS). This helps employers who have a high percentage of their workforce off sick at any one time.
The general principle of the PTS is that if, in a tax month, the total SSP you pay to all of your employees is more than 13 per cent of your total gross employer's plus employees' Class 1 National Insurance contributions (NICs) for the same tax month, you are entitled to a refund of the excess.
You can’t reclaim SSP for sick leave that has been taken after 5 April 2014.
You may be able to reclaim SSP for a previous tax year if a high proportion of your employees were off sick at the same time. You can reclaim the difference if SSP was more than 13 per cent of your Class 1 National Insurance in a tax month.
From 6 April 2016, employers who have not claimed for any Percentage Threshold Scheme (PTS) due up until 5 April 2014 will not be able to claim for it.
How to reclaim
Calculate how much you’ll get back using your payroll software.
How you reclaim the payments depends on how you reported payroll in the relevant tax year. If you were reporting payroll information in real time (RTI), include the amount you’re reclaiming in an Employer Payment Summary (EPS). Otherwise, you should complete an SP32 form and return to HMRC. Access the SP32 form.
SSP is included in gross pay, and PAYE and NICs operate as normal.
You will need a record of payments for each employee for each month in the tax year in which any recovery is made, so that you can complete the PAYE end-of-year forms.
You must keep full records of all sickness absences of four or more consecutive calendar days and of all payments made to employees during their sickness absence. This is so that HMRC can verify that your employees are receiving their full entitlement.