The statutory sick pay (SSP) compensation scheme will be withdrawn from April 2014. As things stand, the scheme compensates employers with a low wages bill with a government contribution towards the cost of paying employees while they’re off work due to illness.

The change shouldn’t lead to a major cost for most employers. Currently, where SSP is paid to employees and totals more than 13% of the total NI contributions (employees’ plus employers’) for the same month you can claim back the excess.

Payroll software for 2014/15 will incorporate the changes into their programs. This should occur automatically so manual adjustments to monthly or quarterly PAYE payments ought not to be necessary.