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Covid-19 related sickness – How do I process this in my payroll software?

To support individuals throughout the Covid-19 pandemic, the government had introduced new legislation regarding Statutory Sick Pay.  If your absence from work is due to sickness or need to stay at home due to COVID-19, SSP is payable from day 1 of leave, rather than day 4.

Please see below on how to process this change in your payroll software for:

  • Xero
  • Sage 50 Payroll
  • Quickbooks Payroll

Xero

When a payroll admin adds a new Statutory Sick leave request for an employee, they’ll have a new option ‘Is the leave because of self-isolation?’

If selected Xero will ignore the 3 waiting days that an employee needs to be sick, and Statutory Sick Pay (SSP) will kick in automatically. The employee will be paid Statutory Sick Pay (SSP) from day one.

Please do note – Existing leave lines will not automatically be updated, but you’ll be able to revert back and edit the original leave request where the new option mentioned above is required.

Sage 50cloud Payroll

Please see this extensive guide on exactly how to process Covid-19 SSP.

This information is from Sage’s useful Coronavirus Hub which is worth checking back for new content.

Quickbooks Online Payroll

  • Go to Employees > Employees.
  • Select the applicable employee.
  • Select Actions (at the top right of the page), then select Additional pay.
  • Select the plus + icon in the top right corner of the pane that appears.
  • Click ‘other earnings’ – ‘add’.
  • Change the name to ‘Coronavirus SSP’ and don’t enter anything in the default amount. Click Save.
  • Go to the gear icon in the top right corner > Account and settings > Payroll. Scroll down to Pension pay types. Where it says Coronavirus SSP – click on yes and this should turn into a green slider. Click again so the slider is grey – meaning it is turned off. Click save.
  • On your payroll run, click ‘edit’ on the employee you want to add Coronavirus SSP. Reduce the salary to the proportion of days worked. Then click ‘add/edit a bonus or other payment’. Click on Coronavirus SSP. Enter the amount to pay the employee based on the table below, and the fact that there are no waiting days to consider. Click done.
  • Click done.

Current SSP Rates

The weekly rate of SSP is £94.25 which is increasing to £95.85 Sunday 5 April 2020.

FEATURING: Alana Hamson
Head of Digital Accounting, Alana is passionate about helping business owners utilise digital accounting technology to unlock productivity. She trained as a chartered accountant and… read more
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