Sick Pay for Part Time worker returning from maternity. NI Contributions

mickym

My wife went back to work in Aug last year after a year on maternity leave.

Her pay for August 2011 to April 2012 will be below the threshold for tax and NI, whereas when she works a full year she will be slightly above it.

I looked on the HMRC website and it says that SSP is only paid if the employee earns enough to pay NI contributions.

Can anyone help / advise me on this as we want to know if she should be ill, would she be entitled for pay from her employer?


Thanks

chrisbur

mickym wrote: »

My wife went back to work in Aug last year after a year on maternity leave.

Her pay for August 2011 to April 2012 will be below the threshold for tax and NI, whereas when she works a full year she will be slightly above it.

I looked on the HMRC website and it says that SSP is only paid if the employee earns enough to pay NI contributions.

Can anyone help / advise me on this as we want to know if she should be ill, would she be entitled for pay from her employer?


Thanks

I think that you may be slightly mis-reading the HMRC website. To qualify for SSP you need earnings at least equal to or above the lower earnings limit, which for 12/13 will be £107 a week; payment of NI does not start untill earnings reach the earnings threshold of £146 a week. So you can qualify for SSP without actually paying NI.
You also refer to working a full year or part year as affecting SSP, the period that affects SSP is the eight weeks before the sickness occurs. It is this eight week period that is averaged to see if you can get SSP not the yearly average earnings.

mickym

right ok.

My wife works 2 jobs.

a monthly combined wage of £702 per month

However she doesnt pay NI contributions in either employment by looking at her wage slips (only pays tax on one job... pays £24 tax on £120pm earned on her second job)

chrisbur

mickym wrote: »

right ok.

My wife works 2 jobs.

a monthly combined wage of £702 per month

However she doesnt pay NI contributions in either employment by looking at her wage slips (only pays tax on one job... pays £24 tax on £120pm earned on her second job)

SSP entitlement is worked out on each job seperately. The monthly lower earnings limit will be £464 for 12/13 so provided that the earnings you quote ie £120 and £582 were averaged in the eight week period then she would qualify for SSP on the higher paid job but not on the lower paid job.

Regarding tax I would think it likely that there will be a bit of an overdeduction this year so best to check totals at end of year and possibly consider splitting the tax allowance between the two jobs for next year.

mickym

Thanks

She earns around £600 mark a month in the main job, so she entitled to SSP then?

Thanks for your advice.

chrisbur

mickym wrote: »

Thanks

She earns around £600 mark a month in the main job, so she entitled to SSP then?

Thanks for your advice.

The entitlement to SSP will depend on average earnings over the eight weeks prior to any sickness, if this is equal to or greater than the lower earnings limit then SSP would be paid ( of course assuming other SSP rules eg notification medical evidence etc were followed)