If an employee has two or more jobs with different employers and the earnings from each are added together, the employers are treated as one for NICs and SSP purposes. This means that:
However, for calculating entitlement to recover SSP under PTS,
they are treated as individual employers.
The employers can agree between themselves how to split the
liability for SSP. If they cannot agree, the liability is split in
the same proportion as the earnings paid to the employee.
When these employers are calculating their liability to pay
Class 1 NICs to decide if any recovery is due, they must include
the pro-rata NICs liability for shared employees. Each employer can
only recover the proportion of SSP that they have paid.
Normally the business that pays the wages will calculate and
record any recovery due and claim it back in the usual way, for
example from their payments to the Accounts Office. At the end of
the tax year all amounts paid and recovered should be recorded on
their End of Year Returns, P35.
Company A, a large employer and Company B, a small employer with a low monthly NICs charge trade in association with each other. They both employ Mrs Smith and each is responsible for 50% of her earnings but Company A actually pays her and includes all her earnings from both contracts on their return. However, when Mrs Smith is sick, even if Company A cannot recover their share of the SSP under PTS, they can recover any amount Company B is entitled to.
