Sick pay

Sick pay

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I have a client who is a company director and the only employee. I pay him £663 per month. He is currently off sick for 10 weeks. Obviously there is no point paying sick pay as he can't claim this back and his company will have to fork out the expense, though will he be entitled to employment support allowance? Thanks

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By dnicholson
23rd Sep 2014 15:18

Benefit
If he qualifies for SSP he's entitled to receive that as a statutory benefit. You can't just not pay it because there's no reclaim.

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By claudialowe
23rd Sep 2014 15:23

I agree.....

I agree with dnicholson - any employer (your OMB or a multi-national) is still obliged to pay SSP.  The other thing that has changed since April is the ability for small employers to reclaim the money paid out.

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Replying to lionofludesch:
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By neileg
23rd Sep 2014 17:04

Not true

claudialowe wrote:
I agree with dnicholson - any employer (your OMB or a multi-national) is still obliged to pay SSP.  The other thing that has changed since April is the ability for small employers to reclaim the money paid out.
If the employer has a sickness scheme that is equal to or more benefical to the employee than sickness benefit then the benefit need not be paid.
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By Snoppy76
23rd Sep 2014 16:23

But is there a point in paying the SSP as the amount of SSP will be lower than his standard wage, therefore increasing his own company's corporation tax bill. The SSP paid will have to come out of the company and not be reclaimable. If I'm not mistaken (correct me if I am), he might as well just pay himself his standard salary of £663 per month and not have to pay any tax or national insurance on this, which is why I'm wondering if any ESA can be claimed as SSP is up to the employers (his own company) discretion. I'm getting a tad lost with it all.

 

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By Carolynne
23rd Sep 2014 17:11

Surely Not

If the Director is to still receive his full pay for his months work (as he doesn't fall into NMW at all, however small the regular payment is).  Surely he doesn't need to receive SSP as his wage is unaffected by his ill health?

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By dnicholson
23rd Sep 2014 17:31

Clarification
To clarify, my original take on the OP's question was that he was considering not paying SSP and not paying £663. You wouldn't pay SSP on top of the normal wage, so if you're paying 663 you're meeting the benefit requirement.

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