As the final rules for the transition have only just
been confirmed, IRIS Payroll Professional could not be altered
to take into account all of the changes. Therefore there
may be some manual intervention required for SSP:
Example 1.
An employee aged 68 is off sick from the start of September
through to the end of October. SSP will be due from the 1st
October, therefore the Period of Incapacity (PIW) starts from this
date and 3 waiting days should be applied. However, the
program will have already applied the 3 waiting days to the start
of the entire entry at the beginning of September, which means it
will try to pay SSP for all of the qualifying days in
October. To correct this you can choose one of the
following options:
- Adjust the diary entry by changing the first 3 qualifying
days in October to be 'Withhold SSP'
- Manually reduce the amount of SSP payable in the payroll run by
3 days
Example 2.
An employee aged 68 was ill in
September and returned to work before the end of the
month, then went off sick again at the beginning of
October. Because the gap between the 2 periods is less than 8
weeks this would create a linked period of absence. As
the employee was ineligible for SSP in the first period
of SSP but is eligible for the second period, a new
PIW should be started on the second period and three waiting
days should apply.
However, the program will try to pay all the
days as SSP because it has already applied the 3 waiting days to
the previous (ineligible) linked period. The choices to
correct this are the same as Example 1.
SMP will continue to be paid correctly - there
is no need for any manual adjustments.
Are NI contributions
affected?
These changes do not alter the position for
National Insurance Contributions. These remain payable
between the ages of 16 and State Pension age, which is currently 60
for a woman and 65 for a man. The state pension age will be
aligned at 65 for both men and women over a ten-year period ending
in 2020.
If you have any questions on this please
contact support on 01642 672233 or complete
the online form. < Back
