Statutory payments The Department for Work and Pensions has announced changes to the rates of statutory payments. The weekly rate of Statutory Sick Pay (SSP) will be increased to £75.40 for qualifying days of sickness absence on or after 6 April 2008. Daily rates are shown in Employer Help Book E14 (2008). The Percentage Threshold Scheme, which determines whether an employer can reclaim from HM Revenue & Customs all or any part of their SSP liability remains unchanged. Employers can recover the whole of the amount by which their total SSP liability exceeds 13% of gross Class 1 NICs for a relevant tax month. The standard flat weekly rate for statutory maternity, paternity and adoption pay for payment weeks starting on or after 6 April 2008 will be increased to £117.18. This up-rated figure is not rounded to the nearest 5p or 10p as has been the case in previous years, in recognition of the fact that employers can now elect to pay statutory payments at a daily rate of £16.74. The calculation of the earnings related rate remains unaltered. Small employers can recover the full amount of statutory maternity, paternity and adoption pay paid to their employees, whilst other employers can only recover these payments at a rate of 92%. The NIC compensation rate for those qualifying for Small Employers’ Relief on statutory maternity, paternity and adoption pay remains unchanged at 4.5%. For 2008/09, a ‘small employer’ is one who paid (or was liable to pay) total gross Class 1 NICs of £45,000 or less in the individual employee’s qualifying tax year. For babies due between 22 July 2007 and 19 July 2008, the qualifying tax year is 2006/07. From 6 April 2008, the NIC lower earnings limit used to determine an employee’s eligibility to receive statutory payments is £90 per week. Paul Tew, Pay Magazine Snowdrop provides a range of Payroll solutions that are fast, flexible and easy-to-use, to suit the many and varied needs of each organisation. To find out more about the software and services that we provide, please click here >>