SSP Record Keeping Requirements for Employers

As an employer, you're legally required to keep accurate records of all SSP payments. These records must be available for inspection by HMRC and may be needed if an employee disputes their SSP.

Legal Requirement

Statutory Sick Pay (General) Regulations 1982 require employers to keep SSP records.

Minimum retention period: 3 years after the end of the tax year the records relate to.

What Records You Must Keep

For Each Employee Who Takes Sick Leave

You must record:

1. Basic Details

• Employee name
• National Insurance number
• Date of birth (if relevant for calculations)

2. Sickness Absence Details

• First day of sickness (Period of Incapacity for Work - PIW)
• Last day of sickness
• Total number of days sick
• Whether the PIW linked to a previous absence

3. SSP Calculations

• Date SSP started
• Date SSP ended
• Qualifying days for that employee
• Waiting days applied
• Number of SSP days paid
• SSP rate paid
• Total SSP paid

4. Reasons for Non-Payment

If SSP wasn't paid, record why:

• Earnings below Lower Earnings Limit
• Absence less than 4 days
• 28 weeks already exhausted
• Other reason

5. Evidence Received

• Date notification of sickness received
• Date fit note received (if absence over 7 days)
• Copy of fit note

Specific Data Points

Earnings Calculation

• Relevant period used (usually 8 weeks)
• Total earnings in relevant period
• Average weekly earnings
• Whether above or below Lower Earnings Limit (£123)

Linking Periods

• Details of previous linked PIWs
• Gap between sickness periods
• Cumulative SSP paid in linked period

SSP Exhaustion

• If 28-week maximum reached, record date
• Copy of form SSP1 issued to employee

Format of Records

Acceptable Formats

Paper records: Traditional written records in a ledger or file.

Digital records: Spreadsheets, payroll software, HR systems.

Payroll software: Most modern payroll systems track SSP automatically.

HMRC doesn't mandate a specific format. Choose what works for your business, as long as the information is:

• Accurate
• Complete
• Easily retrievable

Recommended Approach

Small employers: Simple spreadsheet with one row per absence.

Larger employers: HR/payroll software that tracks absences and calculates SSP automatically.

Sample Record Template

Simple Spreadsheet Format

Employee Name	NI Number	PIW Start	PIW End	Days Sick	Linked?	Waiting Days	SSP Days	SSP Rate	SSP Paid	Cumulative SSP
J Smith	AB123456C	10/01/25	17/01/25	8	No	3	5	£116.75	£583.75	5 days
J Smith	AB123456C	05/03/25	12/03/25	8	Yes	0	8	£116.75	£934.00	13 days

Information to Track Separately

Employee SSP History:

• Total SSP weeks used in current linked period
• SSP weeks remaining (out of 28)
• Qualifying days pattern

Retention Period

3 Years After Tax Year End

Records from tax year 2024-25 (ending 5 April 2025) must be kept until at least 5 April 2029.

Why 3 Years?

Aligns with general HMRC time limits for:

• Compliance checks
• Employee disputes
• Tribunal claims (some can go back 2 years)

Best Practice

Keep records for 6 years if possible. This matches:

• General accounting records retention
• Some tribunal time limits
• Data protection best practice (with lawful basis)

What HMRC Can Request

HMRC has the right to inspect your SSP records during a compliance check.

Common Requests

• SSP calculations for specific employees
• Evidence of earnings used in calculations
• Records of linked periods
• Copies of fit notes
• Forms SSP1 issued

Penalties for Poor Records

HMRC can issue penalties for:

• No records kept: Up to £3,000
• Inadequate records: Discretionary penalty
• Records not produced when requested: Additional penalty

Penalties are per tax year with inadequate records.

Fit Notes

What Are Fit Notes?

Medical certificates from a doctor or healthcare professional, also called "sick notes" or "Statement of Fitness for Work".

When Required

Employees must provide a fit note if they're off sick for more than 7 calendar days in a row (including non-working days).

Retention

Keep copies of all fit notes received:

• They're evidence you had a valid reason to pay SSP
• May be needed if HMRC queries the payments
• Useful if employee later disputes sickness record

Self-Certification

For absences of 7 days or less, employees can self-certify. You don't need a fit note.

Keep a record of self-certification: Note the dates and reason given (even if just "sickness").

Form SSP1

What Is It?

Form you must give employees when they don't qualify for SSP, explaining why.

When to Issue

Within 7 days of deciding not to pay SSP, or within 7 days of SSP ending (e.g., 28 weeks exhausted).

Record Keeping

Keep a copy of every SSP1 form you issue:

• Date issued
• Reason for non-payment
• Proof of delivery to employee

Payroll Records

Integration with Payroll

SSP should appear in payroll records alongside normal pay.

Include on payslips:

• SSP shown separately from normal pay
• Clear that it's Statutory Sick Pay

Recovering SSP from HMRC

Most employers can recover 92% of SSP paid through PAYE.

Records to keep:

• Total SSP paid each month
• Amount recovered through PAYE
• Calculations showing recovery

Employee Notification Records

Proof of Notification

Record when and how employees notified you of sickness:

• Date notification received
• Method (phone, email, text, in person)
• Who they notified

Why it matters: If there's a dispute about late notification, you'll need evidence.

Your Notification Requirements

If your contract specifies how employees must notify sickness (e.g., "call by 9am"), keep evidence that:

• Employees were informed of the rules
• They followed (or didn't follow) the procedure

Linking Period Records

Critical for Accuracy

Track whether absences link to previous periods (gap of 8 weeks or less).

Record for each PIW:

• Date last PIW ended
• Date this PIW started
• Days between (the gap)
• Whether linked (Yes/No)

Running Total

Maintain a running total of SSP paid in each linked period:

• Essential for tracking approach to 28-week maximum
• Prevents accidental overpayment

Data Protection Considerations

Sickness Records Are Sensitive

Under UK GDPR, sickness records are "special category data" requiring extra protection.

Your Obligations

• Process sickness data lawfully (employment law requirement is the lawful basis)
• Keep it secure (access controls, encryption if digital)
• Don't keep it longer than necessary (but must meet 3-year legal minimum)
• Employees have right to access their sickness records (Subject Access Request)

Security Measures

• Restrict access to HR/payroll staff only
• Use password-protected files for digital records
• Lock paper records in secure cabinets
• Don't share sickness details unnecessarily

What to Do If Records Are Lost

Immediate Steps

1. Reconstruct what you can from payroll records
2. Check payslips for SSP payments
3. Ask employees for copies of fit notes they kept
4. Review emails about sickness notifications

Inform HMRC

If HMRC requests records you can't provide:

• Explain what happened
• Provide what you've reconstructed
• Accept penalties may apply

Preventing Future Loss

• Regular backups of digital records
• Store paper records securely
• Consider cloud-based HR systems with automatic backups

HMRC Compliance Checks

When HMRC Visits

HMRC may check your SSP records as part of a wider PAYE compliance check or specifically for SSP.

What they'll look at:

• Calculation accuracy
• Correct application of linking rules
• Evidence of earnings for LEL checks
• Fit notes for longer absences
• Forms SSP1 issued correctly

Common Issues Found

• Incorrect linking of periods
• Waiting days applied twice to linked periods
• Paying SSP when earnings below LEL
• Poor or missing records

Best Defense

Keep complete, accurate, contemporaneous records. If your records are in order, compliance checks are straightforward.

Practical Tips

Tip 1: Use Software

Payroll or HR software reduces errors and maintains records automatically.

Features to look for:

• Automatic SSP calculation
• Linking period tracking
• Fit note storage
• Reporting for HMRC

Tip 2: Regular Audits

Every 6 months, review:

• Are all absences recorded?
• Are SSP calculations correct?
• Are fit notes on file for long absences?
• Are records backed up?

Tip 3: Train Your Team

Ensure anyone handling SSP knows:

• What records to keep
• How to record absences
• Where to store fit notes
• When to issue form SSP1

Tip 4: Document Your Process

Write down your SSP process:

• How employees notify sickness
• Who records it
• How SSP is calculated
• Where records are kept

This ensures consistency and helps new staff.

Checklist for SSP Record Keeping

For each sickness absence, confirm you have:

• Employee name and NI number
• Start and end date of absence
• Total days sick
• Details of notification received
• Fit note (if absence over 7 days)
• Average weekly earnings calculation
• Qualifying days identified
• Waiting days applied (if applicable)
• Linked period check completed
• SSP days paid
• SSP amount paid
• Cumulative SSP in linked period
• Form SSP1 if not paid
• Record stored securely
• Payslip shows SSP

If an Employee Disputes SSP

Why Records Matter

Employees can claim unlawful deduction of wages if you don't pay SSP correctly.

Your defense: Accurate records showing:

• Why SSP was/wasn't paid
• How it was calculated
• Evidence they didn't meet qualifying conditions (if applicable)

No records = weak defense.

Tribunal Claims

Employment tribunals will expect to see:

• Sickness records
• Earnings calculations
• Correspondence about SSP
• Forms SSP1

Keep everything that might be relevant.

Annual Review

Once a year, review your SSP record keeping:

• Are records complete and accurate?
• Is the system working well?
• Any process improvements needed?
• Staff training up to date?
• Records retention schedule followed?

Good record keeping protects you, helps employees, and keeps HMRC happy.