SPM10910 - Statutory Sick Pay (SSP) - Recovery

An overview of the Percentage Threshold Scheme (PTS)

The PTS scheme provides a measure of compensation for employers faced with high levels of sick absence. Unless an employer qualifies under PTS they will not be entitled to recover any of the SSP paid to their employees.

An employer is entitled to recover some of the SSP actually paid to their employees if the total amount of SSP paid in a tax month is greater than a set percentage of their gross Class 1 NICs (employers’ and employees’) liability for that tax month.

The amount the employer can recover is the SSP they have paid over and above the set percentage threshold of their NICs liability.

In order to qualify for recovery under PTS the employer must pay the SSP payments:

• in the tax month in which the employee notified the employer that they were sick
• in the following tax month, if the employer is unable to pay the SSP in the tax month in which the employee notified the employer that they were sick. For example, the employee is sick in the last week of the month and the employer has already run the computer payroll for that month; or
• within the time limits laid down in the Statutory Sick Pay Percentage Threshold Order 1995(SI1995/512) and the Statutory Sick Pay Percentage Threshold Order (Northern Ireland)1995 (SR1995 No. 69), if the SSP is paid following a decision by one of the adjudicating authorities such as HMRC or the First-tier Tribunal.