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How to Calculate Payroll Leave When Your Employee Is Sick or Injured?

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calculating payroll

It can be complicated calculating payroll, and this gets even more complicated when you have to take into account an incident that has occurred. In this article, we are going to show you how to calculate payroll if your worker has had to go on sick leave due to an illness, a non-occupational accident, an occupational disease, or an occupational accident.

If you are looking for a payroll program that automatically calculates and takes into account the losses and incidents of each employee, take a look at Factorial Payroll.

What is a Common Illness or non-occupational accident?

First of all, it is important to understand what a common illness or non-occupational accident is. Both are situations in which the worker as a result of a common illness or non-work accident requires health care and cannot carry out his professional activity normally.

In both cases, a registered doctor must issue a confirmation report. This document must state that the situation of temporary disability is authorised and legitimate.

Common Illnesses or a non-occupational accident that creates an inability to work is coined Statutory Sick Pay (SSP).

Statutory Sick Pay

Through statutory sick pay, you can get £95.85 per week. The employer pays you statutory sick pay, and it can be paid for up to 28 weeks. You cannot receive any less money than this, but can receive more if your company has a sick pay scheme in place. If your illness is not related to Coronavirus, you will start receiving money on the 4th day you are off work sick. The days after your 3 days off are known as your ‘qualifying days.’

Eligibility to receive Statutory Sick Pay

To receive statutory sick pay you must:

  • Be classed as an employee, and have worked for your employer
  • Have been sick for 4 days in a row (this also includes working days)
  • Earn an average of £120 weekly (this is before tax)
  • Are not in an ineligible category
  • Follow your employer’s rules and guidelines to receive statutory sick pay

Ineligibility to receive Statutory Sick Pay

You are not eligible to receive statutory sick pay when:

  • You have received statutory sick pay for the maximum amount of time (28 weeks)
  • Are receiving statutory maternity pay
  • Are self-isolating after having entered or returned from the UK and don’t need to self-isolate for any other reason other than this

How to calculate payroll with sick leave

Calculate eligibility

To manually work out whether an employee is eligible for statutory sick pay, you must calculate their average pay. Use the 8 weeks prior to the date your employee fell ill to determine their average pay. Work out how much your employee was paid during the 8 week period before they fell ill.  Then multiply this figure by 12 (for the months in a year) and divide by 52 (representing the weeks in a year), this will give you the average weekly amount. If it is more than £120, then your employee is eligible for statutory sick pay.

What is an occupational disease, or an occupational accident?

It is important to understand the difference between the previous concepts of occupational disease, and occupational accidents, and common illness or non-work accident. In this case:

Occupational accidents are any bodily injury that a worker may have suffered as a result of the work carried out as an employee. Occupational disease is defined as the damage caused to an employee’s health, which can be caused by the occupational risks associated with each job. Normally they are usually classified as a common disease since they do not appear immediately. It is important to be able to recognise them, since the monetary leave entitlement is much more generous than the money received when an employee is off sick with a common illness.

Occupational disease or occupational accident claims

in 2018-2019, 1.5 million people claimed to suffer from illnesses due to work-related ill-health. Employees can make a claim regarding their occupational disease to try and get compensation. To do this you will need to acquire legal advice from a solicitor. From an occupational disease, you can also claim for an injuries disablement benefit (IIDB) if you fell ill from your job or from a training course related to your job.

In regards to occupational accidents, most of the time you will receive statutory sick pay. In some cases (dependent on your contract) employers may pay you more for accidents that occurred at work. However, this depends on the severity of the accident. Additionally, if you think the fault of your injury lies with your employer, you may be entitled to make a claim. This claim may have to go to court if not settled. The amount of money you could possibly receive is dependent on many factors such as the severity of the accident, whether you recover fully or partially, pain and suffering, etc.

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