This is a freeview 'At a glance' guide to the rules determining entitlement to statutory pay for directors, casual/agency workers and certain other employment types.
For these individuals, it is necessary to consider other factors around entitlement as well as which earnings should be used when calculating Average Weekly Earnings (AWE). This applies across:
Directors
Depending on how and when they are paid determining AWE for directors can be complicated. The general rules are as follows:
How paid | How to determine AWE |
Under terms of director service contract or employment |
As for any other employee |
Paid by determination of director(s) (not formally voted) |
Add together monies paid and other payments of earning |
Paid both contractually and by formal vote |
As for any other employee, but only include monies |
Paid only by formal vote | As with any other employee, but substitute the dates of the formal vote in place of normal paydays |
Monies drawn in anticipation of a formal vote | Don’t include these when working out AWE even if NICs were deducted. |
Casual employees and agency workers
If you deduct Pay-As-You-Earn (PAYE) tax and Class 1 National Insurance Contributions (NICs) from a casual worker’s or agency worker’s earnings (or would do if they were high enough) you must pay them SMP, SPP or SAP if they satisfy the qualifying conditions.
Agency workers can also still get SPP if you did not have work to offer them, or you offered work but they are unavailable due to sickness, injury, paid or parental leave.
The period for which SSP is payable depends on whether the employee has had three months of continuous employment with you:
Other types of employee
Special rules also apply to statutory payments made to other types of worker, including:
See the following HMRC notes for details:
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