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Payroll Solutions For Complex Sick Pay Rules

Payroll Solutions For Complex Sick Pay Rules
Alison Clynes
Written by Alison Clynes
Sunday, 11 July 2010 23:00

Statutory sick pay for employees was one of the great innovations of the twentieth century and something that, today, we mostly take for granted. From a short illness such as a stomach bug, to suffering severe illness for months, employees know that during their time at home they will be paid, and their job kept open for them. It's a straightforward concept.

For staff responsible for administering payroll services, however, the area of sickness pay is highly complex. Firstly, there are periodic changes to national legislation governing statutory sick pay. Then, employers can offer their own contractual arrangements, often more generous than the legal minimum. Some employers accept on-going self-certification, others insist on early stage sick notes. Reporting-in and up-dating procedures vary, as do monitoring and assessment measures. And now many employers have to reduce former sick-pay allowances, from sheer financial necessity.

The new government's forthcoming Welfare Reform Bill will also have an effect on employers and employees alike. One aspect of the bill could make employers responsible for assessing the level of incapacity in workers on long-term sick leave, and for implementing return-to-work packages. All that will mean more specialist training for personnel departments and payroll staff, who will need to decide and calculate ever more intricate payment entitlements.

Battling through the recession, most businesses want to concentrate all efforts on their core activities. The increasing demands on in-house payroll staff mean that many businesses now find it best to bring in a specialist payroll company such as ourselves here at Dataplan Payroll. Our payroll processing services handle all the financial complexities smoothly.

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