This article provides a step-by-step walkthrough for employees and managers on how to manage Statutory Sick Pay (SSP) within ZonePayroll (operating inside NetSuite).
The system is designed to automatically calculate SSP entitlements, rates, and payments based on UK HMRC rules. As of April 6, 2026, ZonePayroll provides support for the latest legislative requirements for sick pay for for selected employee use cases and most customer account configurations.
This guide covers
What employee types and configurations the feature supports and any exclusions
Transition onto the new feature > How to deal with historical data uploads and make an informed decision on what go live option is best for your workforce and business needs
A comprehensive configuration anduser guide explaining the opt-in and functionality
A troubleshooting section
2026 SSP Summary
The following rules are applied automatically by ZonePayroll based on the leave dates entered into the system.
Feature
Statutory Rule
Administrative Impact
Payment Start
Paid from Day 1 of sickness.
No waiting days to track; all sick leave is actionable.
Earnings Threshold
No minimum threshold (All earners eligible).
Lower-paid staff must now be processed for SSP.
Payment Rate
Lower of: 80% of earnings or the flat statutory rate (£123.25).
System automates complex hybrid rate comparisons.
Eligibility
All employees eligible.
Includes part-time. Note: Casual staff eligibility depends on qualifying working days.
Linked Periods
Absences within 8 weeks are linked.
Linking only applies to sickness within your own company.
Unsupported Scenarios & Feature Exclusions
Before proceeding, please review the following tables to ensure your system configuration and employee types are supported by this feature.
1. General Feature Exclusions
The automated SSP feature relies on specific NetSuite time-management architectures. ℹ️ It is very unlikely that you fall into these categories!
Exclusion Scenario
Impact
How to Check
Screenshot/Visuals
Time Link / Payroll Time
Unsupported. This feature is only for customers NOT using Time Link or Payroll Time.
Go to Administrator > Search: Payroll Config. Open your UK Subsidiary record > Time Related Options. If boxes are ticked, the feature is unavailable.
No Time Management
Unsupported. The feature relies on time entries to calculate pay.
If you do not use NetSuite's "Time Tracking" at all, this feature will not function.
2. Unsupported Employee Types (Current Roll-Out)
The current version of the SSP feature does not support automated processing for the following groups. These require manual administration in the payroll.
Employee Group
Why it is Unsupported
Administrative Impact
Casual Employees
They lack a standard working week or "Qualifying Days" defined in the system.
Manual Administration Required: Payroll teams must manually calculate and input SSP for these staff.
Rostered Employees
Variable shift patterns often conflict with the standard "Qualifying Day" logic.
Manual Administration Required: Payments must be calculated outside the automated workflow based on specific rosters.
Per HMRC guidance, the following complex scenarios are not supported out-of-the-box and require manual payroll adjustment or the issuance of an SSP1 form:
Statutory Maternity/Paternity/Adoption Pay: If an employee is already receiving another statutory payment, they are usually disqualified from SSP.
Pregnancy-related Sickness: Sickness within 4 weeks of the expected week of childbirth may automatically trigger Maternity Pay instead of SSP.
Trade Disputes & Strikes: Employees involved in a trade dispute on the first day of their sickness are generally ineligible for SSP.
Legal Custody: Entitlement to SSP ends if an employee is taken into police custody or sentenced to imprisonment.
Phased Returns to Work: If an employee returns on reduced hours/pay for a trial period, the system cannot currently automate the "partial" SSP versus "partial" wages calculation.
Agricultural Workers: Certain agricultural workers fall under different sick pay schemes that are not covered by the standard SSP engine.
Go Live - Transition Framework: Historic Data Upload vs. Clean Slate Activation
ZonePayroll transitions from manual overrides to automated logic as an OPT-IN feature on April 6, 2026. However, as this is new legislation and the system does not currently contain historical data, there are a few things to consider to help you make the right call for your business:
Feature Suitability: You can decide whether to use the new SSP feature or not. It might not be the right choice for your business if your workforce receives Occupational Sick Pay (OSP) that does not align with a pure statutory SSP setup.
Timing: If you decide to opt-in, you can choose the most appropriate time for your business to activate the feature.
Go-Live Evaluation: Once you have decided to move forward, you should evaluate which Go-Live option meets your needs best.
The necessity for different options stems from the nature of SSP and the system's current lack of historical data regarding existing linked periods and existing long-term sicknesses within the 28-week payment window.
Go-Live Options Comparison: A, B, or C?
Go Live Option
Strategy
Workforce Profile
Administrative Effort
Option A
Plug & Play
Fixed Salary Only. No overtime, commissions, or regular variances.
Zero. The system takes AWE from Base Salary and calculates correctly from Day 1.
Option B
Self-Healing
Variable Pay. (Hourly, OT, Bonuses) but happy to perform manual overrides for 8 weeks.
Low. The system uses Base Salary as a "floor." You manually override variable payslip lines for 8 weeks until history builds.
Option C
Managed Migration
High Complexity. High volumes of LTS or cases where historical data is deemed essential.
High (Project). Requires Professional Services engagement for scoped validation and custom configuration.
Operational Effort & System Readiness Matrix
Workforce Profile
System Readiness (No Upload)
Administrative Action Required
Fixed Salary (No variances)
High. Correct Payment from Day 1.
None (Option A). Fully automated using Base Salary to AWE calculation.
Variable Pay / Variances
Moderate. Risk of under-calculating the 80% cap.
Manual Override (Option B): Manually calculate AWE and adjust the Payslip Detail line for the first 8 weeks.
Existing LTS Cases
Moderate. Entitlement balance resets to 28 weeks.
Manual Override (Option B/C): Adjust the Payslip Detail line to match legacy balances until the case concludes.
Option A: "Plug & Play"
Option B: "Self-Healing"
Option C: "Managed"
For fixed salaried staff, the system is ready immediately.
The Logic: The system takes AWE from Base Salary and calculates correctly from day one.
Action: No history upload or manual intervention is required.
For employees with pay variances, the system still takes AWE from the Base Salary, but history is built naturally over time.
The Risk: Because variances (OT/Commission) aren't in the base salary, the system may under-calculate the 80% earnings cap during the first 8 weeks.
The Solution: We recommend a Low-Effort Manual Transition. Administrators manually verify and override the AWE on the payslip for any variable cases that fall sick during the initial 8-week "self-healing" window.
This option is best for customers who require full historical data automation from the first payrun after OPT-IN particularly if significant volumes of Long-Term Sickness (LTS) are currently present that make manual overrides unfeasible.
Action: Engage with Professional Services for a managed project to cleanse and import historical data.
Recommendation: We recommend Option A or B for the majority of customers. Manual overrides for the few variable staff who fall sick in the first two months, are currently sick and no or very few employees that need LSL management is significantly more efficient than complex historical data migration projects.
Part 0: Administrator Feature Configuration
Before processing sick pay, administrators must ensure that the Pay Component Sub-Types are configured correctly. These settings allow the system to automate calculations and restrict manual input where necessary.
Pay Component Configuration
Please double-check that the following Pay Component Sub-Types are set correctly in your system.
Pay Component Sub-Type
Inactive
Time Entry
Leave Request
ESS/MyPay
Purpose
UK Sick Leave
[ ]
☑️
☑️
☑️
User Input: Used for Leave Requests/Time Logs.
Statutory Sick Pay (SSP)
[ ]
☑️
[ ]
[ ]
System Output: Used for payment records.
UK SSP Unpaid Leave
[ ]
☑️
[ ]
[ ]
System Output: Used when entitlement is exhausted.
IMPORTANT: Once you configured and switched on the feature, you should start using the feature - do check your first pay run with sick employees for accuracy. For staff with variable pay and/or prior linked period, these need to be manually overridden until the history is established but for newly sick people on fixed salary, the system works out of the box.
Note: Once you configured and switched on the feature, you should start using the feature - do check your first pay run with sick employees for accuracy. For staff with variable pay and/or prior linked period, these need to be manually overridden until the history is established but for newly sick people on fixed salary, the system works out of the box.
Part 1: For Employees – Requesting Sick Leave
ℹ️ Important Note: This guide describes the path inputting leave via ESS - the feature works independent on how you operationally input leave. > ZoneEmployee Portal, manual via time entries, any which way you use works with this feature!
Role Required: Employee Center
Employees follow these steps to record sickness and initiate the automated SSP calculation.
Navigate to Leave Management: From your Employee Center home screen, click Leave Management in the left-hand menu.
Request Leave: Click the Request Leave button.
Select Leave Type: Select UK Sick Leave from the Leave Type dropdown.
Enter Dates: Enter the Start Date and End Date.
Note: The system identifies the 2026 ruleset based on these dates.
Add Details: Enter the reason for sickness (e.g., "Sickness") in the Details box.
Submit: Click Submit to send the request for approval.
The "New Leave Request" form with "UK Sick Leave" selected and dates entered.
Part 2: For Managers – Approving Sick Leave
Role Required: Manager or Payroll Administrator (or similar Like Payroll-Administrator-Unlocked)
Managers must approve the request to generate the underlying time entries required for the pay run.
Switch Role: Ensure you have switched from your Employee Center role to a role with approval permissions.
Navigate to Leave Management: From the dashboard, click Leave Management.
Go to Leave Approval: Click on the Leave Approval button/tab.
Find the Request: Locate the relevant UK Sick Leave entry in the Leave Requests Pending Approval list.
Review and Approve:
You can approve the request directly in the list (inline).
Or click View to review the specific dates and the employee's calendar before approving.
Change the Status to Approved and click Submit.
ZonePayroll now automatically generates the detailed time entries in NetSuite.
Part 3: Understanding Time Sheets and Data Storage
A common question is where the sick leave "data" goes once a manager approves it. In ZonePayroll, sick leave is stored as standard NetSuite Time Records but is categorized using the specific Pay Component Sub-Types configured in Part 0.
Where are Time Sheets stored?
Once approved, the system generates individual time records for each day of the sickness period. These can be found in two places:
Employee Record: Navigate to the Employee Record > Time Tracking Tab. You will see a sublist of all time entries, including those marked as UK Sick Leave.
Global Time Tracking: You can find these by searching for "Weekly Time Sheets" or navigating to Transactions > Employees > Enter Time.
How to verify the specific entries
To see exactly how the sickness is being allocated:
Open a Time Record for a specific sick day.
Look for the Payroll Component Sub-Type field.
It will explicitly state UK Sick Leave.
The Duration will typically reflect the employee's standard working day (e.g., 7.5 hours).
Part 4: For Payroll Administrators – Processing the Payroll
Role Required: Payroll Administrator
ZonePayroll applies the calculation logic automatically during the "Time Entry" stage of the pay run.
Start Pay Run: Go to Payroll Administration > Payroll Activities > Start New Pay Run.
Configure Pay Run: Select the correct Subsidiary (e.g., Standard UK Config), set your Pay Date, and the period range.
Review Time Entries: On the Employee Time Entry page, locate the Statutory Sick Pay (SSP) line.
Verify the Memo: Look for: SSP Enabled: Created from UK Sick Leave.
How AWE is Calculated (2026 Rules)
The system calculates 80% of Average Weekly Earnings (AWE) and pays this amount if it is lower than the flat statutory rate.
Existing Employees: AWE is derived from the 8-week history in ZonePayroll.
New Hires / Missing History: If no pay history exists in the system to derive AWE, the system will automatically use the Annual Salary from the Employee Record to calculate the appropriate rate.
Important: Variable Pay & Irregular Income
For employees with irregular earnings, ZonePayroll requires pay history from the 8-week "Relevant Period" to automate the calculation. If history is missing, the Average Weekly Earnings (UK) on the Basic Time Sheet must be manually verified.
Process: Click Submit, then proceed to Process Payslips.
You can check the calculations as payslip detail lines after processing
Part 5: Post-Processing Verification
After the pay run is completed and payslips are processed, you can verify the final payment details on the generated payslip record.
Navigate to Payslip: From the Pay Run screen, click on the Payslip link for the specific employee.
Verify Pay Details: Under the Pay Details (UK) tab, locate the Statutory Sick Pay (SSP) line.
Review Balances:
Confirm the Quantity (Hours) matches the approved leave.
Confirm the Rate matches the hybrid calculation (80% vs Flat Rate).
If the entitlement was hit during the period, verify the presence of the UK SSP Unpaid Leave line.
Part 6: Advanced – Entitlement Tracking & Linking
ZonePayroll manages the 28-week limit and "Linking Periods" (absences within 8 weeks) automatically via the Basic Time Sheet.
Review Basic Time Sheet: Navigate to the Basic Time Sheet (Employee record > Payroll > Time Tracking).
Check SSP Entitlement Weeks: This field displays the remaining balance (e.g., 27.0).
Automatic Switch: Once the balance hits 0, the system switches to UK SSP Unpaid Leave.
Administrative Hint: Linking Rules: Linking logic and the 28-week entitlement balance apply only to sickness recorded within your organization. Sickness history from a previous employer is not carried over and does not impact the employee’s balance in ZonePayroll.
Troubleshooting & FAQ
Why is the SSP rate lower than the statutory maximum (£123.25)?
Under the 2026 rules, if 80% of an employee's Average Weekly Earnings (AWE) is less than the statutory flat rate, the lower amount is paid. This is common for part-time or lower-paid staff.
How does "Linking" affect the 80% calculation?
For linked absences, ZonePayroll uses the AWE calculation from the first period of sickness to ensure payment consistency across the entire linked claim.
What if AWE shows as £0.00 for a new employee?
This occurs if the system has no recorded pay history for the employee's relevant period. You may need to provide an AWE override on the Basic Time Sheet to trigger the 80% rule correctly.
Can I manually enter sick hours without a leave request?
Yes. If you need to bypass the leave request workflow, a Payroll Administrator can go to Payroll Administration > Payroll Activities > Enter Daily Time. Ensure you select the UK Sick Leave sub-type. Once approved, the pay run will pick these up automatically.
Why did the system switch to "UK SSP Unpaid Leave"?
This occurs automatically when an employee has exhausted their 28-week statutory entitlement. Verify the remaining balance in the SSP Entitlement Weeks field on the Basic Time Sheet.