How to Process SSP in Sage 50cloud Payroll: 2026 Rules and Steps

Statutory Sick Pay (SSP) is a statutory payment that eligible employees may receive when they are unable to work because of illness or injury. Processing SSP correctly in Sage 50cloud Payroll helps employers maintain accurate payroll calculations and sickness records.

From 6 April 2026, SSP rules changed, including the removal of waiting days and the Lower Earnings Limit. The weekly SSP rate is now the lower of £123.25 or 80% of the employee’s average weekly earnings, subject to the applicable rules.

This guide explains the 2026 SSP changes, eligibility and entitlement, the checks to complete before processing SSP, and how to record sickness and process SSP using Quick SSP, Enter Payments, or manual calculations in Sage 50cloud Payroll. It also covers transitional rules for sickness absences that began before 6 April 2026.

What Changed to SSP From 6 April 2026?

From 6 April 2026, Statutory Sick Pay (SSP) changed by removing waiting days and the Lower Earnings Limit (LEL), with SSP now calculated at the lower of 80% of average weekly earnings or £123.25 per week. Here are the key SSP changes you need to know:

1. SSP Starts From the First Day

Before 6 April 2026, employees normally had three unpaid waiting days at the start of a new sickness absence. SSP became payable from the fourth qualifying day if the employee met the eligibility conditions.

From 6 April 2026, employers no longer apply waiting days. SSP can become payable from the first day of sickness absence, provided the employee meets the applicable eligibility conditions.

When an absence crosses 6 April 2026, check the transitional rules to determine which SSP rate and payment rules apply.

2. The Lower Earnings Limit No Longer Applies

Before 6 April 2026, employees generally needed average weekly earnings at or above the Lower Earnings Limit (LEL) to qualify for SSP.

From 6 April 2026, employers no longer use the LEL as an SSP eligibility condition. Employees can qualify for SSP even when their earnings fall below the former threshold, subject to the remaining eligibility requirements.

3. SSP Rate Changed

From 6 April 2026, employers calculate SSP at the lower of:

• £123.25 per week, or
• 80% of the employee’s average weekly earnings.

Therefore, an employee whose average weekly earnings produce an 80% figure below £123.25 receives the lower amount.

Statutory Sick Pay Eligibility and Entitlement in Sage 50 Cloud Payroll

An employee qualifies for Statutory Sick Pay (SSP) when they meet the statutory conditions for sickness absence and employment, with no Lower Earnings Limit or waiting days applying from 6 April 2026. Here are the key SSP eligibility and entitlement rules that employers need to check:

SSP eligibility and entitlement	What employers need to know
Employee status	The individual must be classed as an employee and must have done some work for the employer.
Sickness absence	The employee must be unable to work because of sickness or injury and must be sick for at least one full working day.
Lower Earnings Limit	From 6 April 2026, the LEL no longer determines SSP eligibility. An employee can qualify regardless of earnings, subject to the other statutory conditions.
Waiting days	The previous three waiting days no longer apply. For an eligible employee, SSP can be payable from the first full day of sickness absence.
SSP rate	From 6 April 2026, SSP is the lower of £123.25 per week or 80% of the employee’s average weekly earnings.
Qualifying days	Employers pay SSP for the days the employee normally works, known as qualifying days. For a partial week of sickness, employers calculate SSP using the applicable daily rate.
Maximum entitlement	An employee can receive SSP for up to 28 weeks, subject to the statutory rules.
Linked sickness periods	Separate sickness periods can link when the gap between them is 8 weeks or less. Linked periods count toward the same 28-week SSP limit.
Sickness notification	Employees must notify their employer of sickness within the employer’s specified deadline or within 7 days if the employer has not set one.
Medical evidence	An employee normally needs a fit note or other acceptable medical evidence when they have been off sick for more than 7 days in a row.

Also Read: How to Run Year-End Wizard in Sage 50?

What to Check Before You Process SSP in Sage 50 Cloud Payroll

Before you process SSP in Sage 50 Cloud Payroll, check the sickness dates, qualifying days, average weekly earnings, applicable SSP rate, previous linked sickness periods, and employee notification or medical evidence where required.

Check	What to verify
Qualifying day pattern	Check that the employee’s normal working days are correctly set up in their holiday and absence patterns. Sage uses this information to determine qualifying days and calculate the appropriate SSP amount.
Sickness dates	Confirm the exact start and end dates of the absence. If the absence crosses 6 April 2026, check whether the relevant transitional rules affect the calculation.
Part-worked day	If the employee works part of their shift and then goes home sick, do not treat that day as an SSP day. Record the absence from the appropriate subsequent day.
Previous sickness records	Review earlier sickness periods to identify linked absences and check the employee’s remaining SSP entitlement.
Payroll information	Confirm the average weekly earnings and other payroll details Sage needs to calculate SSP in Sage 50 Cloud Payroll.
Sickness records	Check that the employee has reported the absence correctly and that any required supporting evidence has been recorded.

How to Process Statutory Sick Pay in Sage 50 Cloud Payroll?

Sage 50cloud Payroll provides different ways to record sickness and process SSP, depending on the employee’s circumstances and the calculation method required. Quick SSP helps calculate entitlement from the recorded sickness details, while Enter Payments is used to review and process the payment. The Absence Diary records the employee’s absence, and manual SSP calculations allow you to enter a payment amount when manual processing is necessary.

Before choosing a method, check the employee’s sickness dates, qualifying days, average weekly earnings, and any applicable transitional rules. Menu names and options may vary by payroll version, so confirm the steps against the version you use.

1. Process SSP Using Quick SSP

To calculate SSP in Sage 50 Cloud Payroll automatically, use Quick SSP to record the employee’s sickness and calculate their SSP entitlement. This method guides you through the sickness details, qualifying days, and earnings information before you save the payment. Follow these steps to record and calculate SSP with Quick SSP:

• Go to Payroll > Change Process Date.
• Enter the required process date and select OK.
• Select the relevant employee and choose Employee > Recording Sickness.
• Enter the first and last day of sickness.
• Select Calculate Entitlement.
• If applicable, select Withhold SSP Payments or Welfare to Work and enter any required comments.
• Open Qualifying Days and check that the employee’s working pattern is correct.
• Select Earnings during set period and review the employee’s average earnings.
• Select OK, then check that the correct qualifying day pattern and average earnings appear.
• Select Save, then Close.
• Sage makes the calculated SSP available in Enter Payments for the employee.

2. Record Sickness Through the Absence Diary

To keep an accurate record of sickness absence, use the Absence Diary within the employee record. This method records the employee’s absence dates and keeps the sickness information alongside their other absence records. Here are the steps to add the sickness absence to the employee’s diary:

• Open the relevant Employee Record.
• Select the Absence tab and choose Diary Entry.
• Select the appropriate absence type and enter the duration of the sickness.
• Select OK, then Save.
• Review the employee’s absence diary to confirm that the entry has been recorded correctly.
• You can then use Enter Payments to process the applicable SSP during payroll processing.

3. Process SSP Through Enter Payments

To calculate and record SSP during payroll processing, use the Enter Payments window. This method lets you enter SSP in Sage 50 Cloud Payroll and review the SSP payable for the current pay period. Use the following steps to enter and review SSP through Enter Payments:

• Select the relevant employee and choose Payroll > Enter Payments.
• Open the SSP/Parental Leave tab.
• Select and drag across the dates covering the sickness absence.
• Right-click one of the selected dates and choose SSP > Due to sickness.
• Add a comment if required, then select OK.
• Check that the absence diary displays the correct entries for the selected dates.
• Check the S.S.P. Payable box to confirm the SSP amount for the current pay period.
• Check the S.S.P. Weeks box to confirm the number of weeks recorded.
• Select Recording S.S.P., then select No when prompted.
• Select Earnings during set period, then OK, and review the payment information.
• Select OK, then Save and Close.

4. Process SSP Using Manual Calculations

To enter SSP in Sage 50 Cloud Payroll manually, enable manual statutory sick pay calculations and enter the required SSP amount yourself. Use this method only when you need to control the SSP entry manually, and carefully check the amount because Sage does not validate manually entered SSP payments. Follow these steps to enable manual SSP and enter the payment:

• Open the relevant employee record.
• Select Absence > S.S.P.
• Select Qualifying Days.
• Select the Manual Statutory Sick Pay Calculations checkbox and choose OK.
• Select Diary Entry and enter the relevant sickness dates if you want to retain them for reference. These dates do not calculate the manual SSP amount.
• Select Save, then Close.
• Select the employee and go to Payroll > Enter Payments.
• Open the SSP/Parental Leave tab.
• Select Recording SSP.
• Enter the required SSP amount in the Statutory Sick Pay field.
• Select OK, then Save/Next.

Also Read: How to Fix Sage 50 Payroll Tax Calculation Errors?

How to Process Manual SSP in Sage 50 Cloud Payroll?

To process manual SSP in Sage 50cloud Payroll, switch on manual statutory sick pay calculations for the employee, enter the payment separately, and record the absence in the diary if required. Here is the complete list of steps to process manual SSP

Enable Manual SSP

To prepare an employee for manual SSP processing, change the SSP settings in their employee record. Use these steps to enable the manual calculation setting:

• Open the employee list and double-click the employee you need to update.
• Select Absence, then choose S.S.P.
• Select Qualifying Days.
• Turn on Manual Statutory Sick Pay Calculations, then select OK.
• Select Diary Entry and enter the applicable From and To dates.
• These dates are recorded for reference. They do not determine the SSP payment when manual calculations are enabled.
• Select Save, then Close.

Enter the Manual SSP Payment

To add the manually calculated SSP to payroll, enter the payment through the SSP/Parental Leave section in Enter Payments. Review the amount before saving because Sage does not calculate the payment automatically when you use manual SSP. Complete the following steps to record the payment:

• Select the relevant employee and open Payroll.
• Select Enter Payments, then open the SSP/Parental Leave tab.
• Select Recording SSP.
• Enter the calculated SSP amount in the Statutory Sick Pay field.
• Select OK, then choose Save/Next.

If the employee’s normal payments need to be reduced because of the statutory payment, make the required adjustment in Enter Payments. Where appropriate, you can use the Make Up Basic feature to adjust normal payments for statutory pay.

Add Manual SSP to the Absence Diary

To show the sickness period in the employee’s absence history, record the absence as a historical SSP entry. Manual SSP does not automatically add an entry to the absence diary, so you need to create one separately when you want the absence dates documented there. Follow these steps to record the absence without triggering another SSP calculation:

• Open the relevant employee record and select the Absence tab.
• Select Diary Entry.
• Leave the first dropdown as SSP and change the second dropdown to Historical.
• Enter the required sickness period in the From and To fields.
• Select OK.

SSP Transitional Rules: What Employers Need to Know

To process SSP when an employee’s sickness absence crosses 6 April 2026, apply the transitional rules based on the original sickness date, previous SSP entitlement, and linked absence periods.

1. The employee was not eligible because of low earnings

If an employee started their sickness absence before 6 April 2026 but did not qualify because their earnings were below the Lower Earnings Limit (LEL), they may become eligible for SSP from 6 April 2026. This applies when the absence started on or after 22 September 2025, or when an earlier absence included a return to work between 22 September 2025 and 5 April 2026. Calculate their average weekly earnings (AWE) using the period before the sickness absence or, for a linked absence, the first sickness period.

2. Absence started on or before 21 September 2025

An employee does not become entitled to SSP from 6 April 2026 if their sickness absence started on or before 21 September 2025 and continued without a break until 5 April 2026. The same rule applies when a linked sickness period continues on or after 6 April 2026. SSP can become payable again after the employee returns to work for at least 8 weeks.

3. The employee was already receiving SSP before 6 April 2026

If the employee remained off sick on 6 April, apply the new SSP rate from that date. Where the employee earns between £125 and £154.05 per week and 80% of their AWE would produce a lower SSP rate, transitional protection allows them to receive the £123.25 weekly rate while the same sickness absence continues. The protection ends when the employee returns to work, or their SSP entitlement ends.

4. Waiting days remaining on 6 April 2026

If an employee started sickness absence before 6 April and still had waiting days remaining on that date, the waiting days no longer apply from 6 April. Do not pay SSP for waiting days before 6 April, but pay SSP for applicable qualifying days from 6 April under the new rules.

5. Employee restarted sickness absence on 4 or 5 April 2026

If an employee had previously received SSP, returned to work, and started another sickness absence on 4 or 5 April, apply the transitional rules based on the length of the restarted absence. If it lasts 3 days or less, pay SSP only for qualifying days from 6 April. If it lasts 4 days or more, pay SSP for qualifying days from the first day of the restarted absence.

6. Linked sickness period from 2025/2026

When a 2026/2027 sickness absence links to an earlier 2025/2026 absence, use the AWE from the first period of sickness rather than the latest absence. In Sage 50cloud Payroll, check the employee’s original sickness details and enter the correct Start of P.I.W. date when reviewing the SSP calculation.

Final Words

You can process Statutory Sick Pay in Sage 50cloud Payroll using Quick SSP, Enter Payments, and manual calculations where appropriate. The Absence Diary helps maintain an accurate record of sickness periods.

Before completing payroll, verify the employee’s sickness dates, qualifying days, average weekly earnings, and remaining SSP entitlement. If the absence began before 6 April 2026, check the applicable transitional rules and confirm the calculation against current HMRC guidance.

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