NIM09310 | Earnings Periods: Statutory Payments: Lump sum payments

Section 4(1) of the Social Security Contributions and Benefits Act 1992 (SSCBA 1992)

If the employer makes a lump sum payment of any Statutory Payment, such as:

• Statutory Sick Pay (SSP),

• Statutory Maternity Pay (SMP),

• Statutory Paternity Pay (SPP),

• Statutory Adoption Pay (SAP)

• Shared Parental Pay (ShPP) or

• Statutory Parental Bereavement Pay (SPBP)

to an employee and the employee’s employment has:

• not ended, treat the lump sum payment as part of the pay in the earnings period in which the employer pays it and calculate the NICs on the total amount; or

• ended and regular payments have stopped, the earnings period is a week