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Sick Pay for an Employee Paid Monthly

  • Student
  • 2 posts
  • # 117310

Hello,

 

I just took a mock exam - Level III Diploma in Payroll Management and I'm having troubles with the next exercise:

Leonora Qweech 

Date of Birth 03/12/1988

Start Date 25/05/2009

NIC Category A
Director Yes
Date appointed as a director
25/05/2009
NIC Treatment
Normal employee method
Tax Code Standard Personal Allowance
Monthly paid
Salary £11,500/year
Student Loan Deductions No
Enrolled in Pension Scheme Yes

She earns £958.33 per month

Leonora Qweech falls sick and is unfit for work from 6th May until she returns to work on 22nd May. Hectic Hampers only pays her the Statutory Sick Pay to which she is eligible for the time that she is off work.

She earns £958.33 per month

She is entitled to £125.09 statutory sick pay and her taxable gross for that month is £641.12.

How the taxable gross was calculated for the month she was sick?


  • Payroll Agent
  • Practice Licence
  • 8 posts
  • # 117313

Hi Larissa,

you would need to reduce the salary by the number of days absent from work, then add on the SSP amount to give you the gross to pay. 

 

Starting salary = 958.33

less 10 days absent = £442.30

subtotal of - £516.03

Add SSP of £125.09

Gross to pay = £641.12

 

Remember that SSP is only paid from the 4th day of absence so only 7 days of SSP payable. 

Hope that helps, but if you need anymore guidance, let me know. 

 

Kevin

  • Student
  • 2 posts
  • # 117315

Hello Kevin,

 

It's all clear now :)

 

Thank you so much!

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