ELI for 99
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"The staff at Nannytax are always friendly and helpful. Your service is excellent and relieves parents of a very time-consuming part of employing a nanny."
Dr H C - Beckenham

Sick Pay

Most of us have had mornings when we wake up a little under the weather and we just don't feel like going to work. Of course nannies are no different. But when a nanny calls in sick it has a knock-on effect for the whole family. An employer will probably be late for work while trying to arrange emergency childcare, and if that fails they may even have to take the day off.

An employer may want to consider introducing an incentive to discourage their nanny from taking too many sickies. When a nanny is off sick for longer than three days their employer is responsible for administering Statutory Sick Pay (SSP) on their employee's behalf. The first three consecutive days (excluding days not normally worked) of illness are known as "waiting days" and any payment during this period is at the employer's discretion. From the fourth consecutive day SSP can be paid instead of, or as a part of the normal rate of pay. Please refer to the rates and thresholds page for the current statutory rate.

A nanny employer is entitled to Small Employer's Relief, which means they can claim back a proportion of the SSP paid. If the employer uses Nannytax we will calculate and apply the current formula on their behalf. SSP is claimed back by a deduction from the employer's National Insurance contribution liability for the quarter in which the absence through illness occurred. In effect this means that their payments to HMRC will be reduced for that quarter.

Introducing an incentive

Although it's not a legal requirement many employers pay their employees' salary in full for a set number of sick days per year. However because nanny employers are so dependent on their nannies coming to work an increasing number now offer an incentive instead.

An incentive can be a Friday afternoon off, a voucher or a meal at a local restaurant. If an incentive is offered, the employer should include the terms in the employment contract.

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