You can configure the Payroll module to generate SSP for employees per UK legislation. When a UK employee is sick for four consecutive days or more, they are eligible for SSP up to 28 weeks based on a standard rate. Organizations pay SSP to employees at the same time as their regular pay, and it is subject to NI and tax. Additional information is available in this topic under the section SSP Terminology.
Before You Begin: This topic covers the functionality for calculating statutory sick pay (SSP) in the Payroll module. This is separate from the functionality for calculating statutory sick pay in the WFM module, which is described briefly in Generating SSP in WFM vs Payroll.
To support this functionality in the Payroll module, the Apply UK Sick Pay Rule is available in Payroll Set-up > Payroll Policies. When you configure this rule, the application calculates SSP based on approved time away from work (TAFW) requests. For example, when an employee requests sick days in Work > Time Away List and their manager approves the request, the application can use this record to calculate SSP.
Note: The application only bases SSP calculations on time that employees request (or managers request on behalf of employees) via TAFW approvals, and does not consider time that users manually add to timesheets. If you want to base SSP on timesheet information, you must configure SSP through the WFM module.
During calculation, the Apply UK Sick Pay Rule checks that employees meet the income requirements to receive SSP, and if they have reached the maximum amount. You can also configure the rule to stop allowances or deductions for the period in which the employee is receiving SSP.
In the employee payslip, the allowance appears as a separate line.
Notes:
- The Payroll module can calculate SSP based on a five- or seven-day workweek.
- When calculating SSP, the Payroll module does not consider employee balances or entitlements from the WFM module.