WFM UK | HR & Payroll: Absence (Sickness) - SSP & CSP Processing and Management

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Overview

This article covers how Statutory Sick Pay (SSP) and Company Sick Pay (CSP) are processed and managed within Fourth's HR & Payroll system. It is intended to be read alongside the SSP Legislation, Eligibility & Calculations article, which covers the legislative framework underpinning SSP. This article focuses on the system side, covering how Fourth calculates AWE, how SSP entitlement is tracked, how linked absences are handled, and how CSP is calculated and managed alongside SSP.

For customers who use Company Sick Pay, the CSP section covers how the system determines eligibility based on contract configuration, how entitlement is calculated, and how CSP and SSP interact throughout a period of sickness.

Contents

1. SSP in Fourth HR & Payroll
   • How AWE is calculated in the system
     • New Employees & Insufficient Earnings History
     • Overriding AWE
   • Checking SSP entitlement
   • How linked PIWs are handled
   • SSP1 recording
   • Payslip Representation (SSP)
     • During Payroll Processing
     • Employee Payslips
     • Salary Offset
2. Company Sick Pay (CSP) in Fourth HR & Payroll
   • How CSP Eligibility & Entitlement Works
   • How CSP is calculated
   • Payslip Representation (CSP)
   • CSP entitlement reset
3. Absence Record Breakdown
4. Further Reading & Resources

SSP in Fourth HR & Payroll

Once an absence record has been created, whether in days, in hours, or via data import, the system will automatically assess SSP eligibility and begin calculating SSP where applicable. The sections below cover how the system handles each stage of SSP processing, from the initial AWE calculation through to entitlement tracking and payslip representation. For guidance on creating absence records, refer to the Creating Absences in Days, Creating Absences in Hours, and Absence (Sickness) Data Imports articles.

How AWE is Calculated in Fourth

The system automatically calculates AWE by looking back at the employee's Class 1 NIC earnings across the pay dates falling within the 8-week relevant period before the first day of sickness. The calculated AWE is stored against the absence record and carries forward to any linked absences.

For example, an employee is monthly paid with an absence starting on the 1st August 2026 and ending on the 15th August 2026:

For an absence starting 1st August 2026, the 8-week relevant period works as follows:

• The last normal pay date, for this employee, before the first day of sickness is 31st July 2026
• 8 weeks before 31st July 2026 takes us back to 5th June 2026
• The relevant period is therefore 6th June 2026 to 31st July 2026

The relevant period of 6th June 2026 to 31st July 2026 captures two monthly pay dates for this employee:

• 30th June 2026 pay date with earnings of £3,791.67
• 31st July 2026 pay date with earnings of £3,791.67

With the two pay dates totalling £7,583.34, and the employee being monthly paid, the system calculates AWE as follows:

• £7,583.34 ÷ 2 = £3,791.67 (total earnings divided by number of months in the relevant period) 
• £3,791.67 × 12 = £45,500.04 (converted to an annual figure) 
• £45,500.04 ÷ 52 = £875.00 (divided by the number of weeks in a year to give the weekly figure)

To view the calculated AWE for an absence, navigate to either:

• HR Module > Employees > Employee List > Find & Select Employee > Employee HR Info > Absence > Select Absence > Override Details
• Payroll Module > Employees > Employee List > Find & Select Employee > Employee Info > Absence > Select Absence > Override Details

Selecting Override Details will open a pop-up displaying the calculated AWE alongside other absence payment details:

The same approach applies for weekly, fortnightly, and four-weekly paid employees, with the system identifying the pay dates falling within the 8-week relevant period and applying the respective calculation:

• Weekly paid: Total Class 1 NIC earnings within the relevant period ÷ 8
• Fortnightly paid: Total Class 1 NIC earnings within the relevant period ÷ 8
• Four-weekly paid: Total Class 1 NIC earnings within the relevant period ÷ 8

For weekly, fortnightly, and four-weekly paid employees, the calculation simplifies to dividing total earnings by 8, regardless of pay frequency, since the relevant period is always 8 weeks of earnings. The monthly calculation differs, as it uses an annualised figure to account for the varying number of days in each month.

New Employees & Insufficient Earnings History

Where an employee has not yet had a pay date fall within the relevant period, the system will still attempt to calculate AWE using any rota or schedule weeks that have been submitted, even if not yet paid. This prevents the employee from receiving a £0.00 AWE figure where submitted hours data is available.

For example, a monthly paid employee on their first pay cycle, paid at £15.00 per hour, has the following submitted rota weeks ahead of their fourth week absence:

• Week 1: 20 hours = £300.00
• Week 2: 27 hours = £405.00
• Week 3: 12 hours = £180.00
• Week 4: Not yet submitted (absence falls here)

Total earnings from submitted weeks: £885.00

AWE calculation: £885.00 ÷ 3 (submitted weeks) = £295.00

The same approach applies where an employee has some pay history but not a full 8 weeks. The system uses whatever pay dates and submitted rota weeks fall within the relevant period, calculating AWE from the data available rather than extrapolating a full 8-week figure.

Where an employee is salaried, the system will use their annual salary divided by 52 to calculate AWE in the absence of any pay or rota history.

Where no earnings data or submitted rota weeks exist at all, the system will return an AWE of £0.00. In this scenario, the override function should be used to manually enter an appropriate figure.

Overriding AWE

Where the calculated AWE needs to be adjusted, users with the Absence Override Access permission can enter a manual override value directly within the Override Absence Details pop-up. The override field sits alongside the system calculated figure, which remains visible but is not editable, allowing users to refer back to the original calculated AWE at any time.

To override AWE, navigate to either:

• HR Module > Employees > Employee List > Find & Select Employee > Employee HR Info > Absence > Select Absence > Override Details
• Payroll Module > Employees > Employee List > Find & Select Employee > Employee Info > Absence > Select Absence > Override Details

Using the Override field against Average Weekly Earnings, enter the corrected figure and select Save.

Where an override is applied to an absence that is the first in a linked period, the overridden AWE will carry forward to any subsequent linked absences. This is consistent with the legislative requirement that AWE is determined at the start of the first PIW and remains fixed for the duration of the linked period.

Where an override needs to be reversed, the system calculated AWE remains visible in the pop-up and can be re-entered manually into the override field.

Checking SSP Entitlement

SSP entitlement against the 28-week cap is tracked at the top of the employee's Absences screen, displaying two figures:

• SSP Days Paid: The total number of SSP days paid within the current PIW, including any linked absences
• SSP Weeks Paid: The total number of SSP weeks paid within the current PIW, including any linked absences

These figures reflect the current or most recent PIW and its linked absences. Where a PIW has been broken by a gap of 57 days or more, the figures will not reset until a new absence is recorded that forms a new PIW. At that point, they will begin counting from zero against the new PIW.

This can be seen in the screenshot above, where SSP Weeks Paid shows 2 weeks against the latest absence, despite two previous absences being present on the employee's record. As those earlier absences are separated from the latest absence by a gap of 57 days or more, they form separate PIWs and do not contribute to the current SSP Weeks Paid figure.

Monitoring SSP Weeks Paid against the 28-week cap allows payroll and HR teams to identify where an employee is approaching or has reached their maximum SSP entitlement, and take the necessary action such as issuing an SSP1 form.

How Linked PIWs are Handled

The system automatically identifies where two absences fall within the 56-day linking period and treats them as a single continuous PIW for SSP calculation purposes. This is indicated by the Linked column within the Employee Absences grid on the employee's Absences screen.

Where Linked shows Yes, the absence is linked to the absence immediately before it, and the AWE and SSP entitlement from the first PIW carries forward. Where Linked shows No, the absence is the first in a new PIW, either because it is the employee's first absence or because the gap from the previous absence exceeds 56 days, breaking the link.

SSP1 Recording

Where the Record SSP1 Details global setting is enabled, an SSP1 details section is available within the employee's absence record, allowing users to log whether an SSP1 has been issued, the reason for issuing it, and the date it was sent. This is an administrative recording tool only and does not generate or send an SSP1 form automatically.

For customers using Fourth's payroll bureau service, SSP1 forms will be created by the bureau and provided as a PDF for distribution to the relevant employees.

For further detail on when an SSP1 must be issued, refer to the SSP Legislation, Eligibility & Calculations article.

Payslip Representation (SSP)

During Payroll Processing

While a payroll is open and not yet closed, SSP appears on the payroll summary as a separate pay element labelled Statutory Sick Pay. 

Employee Payslips

Once payroll is closed and payslips are generated, this element appears on the employee's payslip as SSP.

SSP always appears as its own separate pay element and is never combined with other pay elements.

Salary Offset

Where the absence type is configured to use negative payments, the system will send a negative payment to the employee's payroll to offset their salary for the days or hours they were absent. This is separate from SSP, which continues to generate independently and is not influenced by the salary offset calculation.

Absence in Days

For day-based absences, the negative payment is calculated as follows:

• Units: The number of qualifying days in the absence
• Amount: Determined by the calculated payment type configured against the absence type

For example, an employee absent from 1st to 15th August 2026 with a Monday to Friday working pattern has 10 qualifying days. With an annual salary of £46,532.01, and the calculated payment type configured as annual salary ÷ 260, the daily rate is £46,532.01 ÷ 260 = £178.97. The negative payment is therefore 10 units at £178.97 per unit, giving a total offset of £1,789.70.

Calculated payment types can be found or configured at Payroll Module > Administration > Payment Types

Absence in Hours

For hours-based absences, the salary offset applies to salaried employees only. The total absence hours within the pay period are summed and the hourly rate is calculated using the following hierarchy:

1. Employee Override FTE (Employment Details), if present
2. Contracted Hours (Employment Details), if no Override FTE is available
3. Job Title FTE, if neither Override FTE nor Contracted Hours is available
4. A default assumption of 40 hours per week if none of the above exist

The hourly rate is calculated as:

(Annual Salary ÷ 52) ÷ Weekly Hours = Hourly Rate

The sick offset is then:

Total Absence Hours × Hourly Rate = Sick Offset

For example, an employee absent from 1st to 15th August 2026 with a Monday to Friday working pattern has 80 absence hours within the pay period (10 qualifying days at 8 hours each). With an annual salary of £46,532.01 and a Override FTE of 37.5 hours per week:

• Hourly rate: (£46,532.01 ÷ 52) ÷ 37.5 = £23.87
• Sick offset: 80 × £23.87 = £1,909.60

Company Sick Pay (CSP) in Fourth HR & Payroll

Where an employee has a contract assigned that is configured to pay Company Sick Pay, CSP will be calculated and paid alongside SSP during a period of sickness. Where no contract is assigned, or the assigned contract has not been configured with CSP, CSP will simply not be calculated or paid.

How CSP Eligibility & Entitlement Works

Before calculating any CSP payment, the system checks the following against the employee's contract configuration:

• Probation Period: Where the contract is configured not to pay CSP during probation, the system will verify the employee's probation end date before paying CSP. For full detail on how the probation end date is determined, refer to the Configuring CSP Entitlements article.
• CSP Waiting Days: Where the contract is configured with a CSP waiting period, the configured number of days must pass before CSP begins to pay. For full detail on how CSP waiting days are configured, refer to the Configuring CSP Entitlements article.
• Entitlement Remaining: The system checks the employee's remaining CSP entitlement within the configured absence period. Where entitlement has been exhausted, CSP will cease even if the employee remains absent.

The employee's current CSP entitlement and days taken are visible at the top right of the employee's Absences screen. Each qualifying absence day consumes one full day of CSP entitlement, or 0.5 days where a half day is applicable, reducing the remaining entitlement accordingly.

Running Example

Our example employee has 20 days CSP entitlement configured on a rolling year basis. Their absence runs from 1st to 15th August 2026 with a Monday to Friday working pattern, giving 10 qualifying days. All 10 days are eligible for CSP, as no waiting days are configured and the employee has their full entitlement available. Following the absence, the employee's CSP entitlement position is (Also visible in Fig.13.):

• CSP Entitlement: 20 full days
• CSP Days Taken: 10 full days
• CSP Remaining: 10 full days

How CSP is Calculated

CSP is paid on each qualifying absence day at a daily rate determined by the employee's pay type. The calculation differs depending on whether the employee is salary or hourly paid.

• Salary Paid (Full Time & Part Time)

  • Daily Rate = (Annual Salary ÷ 52) ÷ Weekly Qualifying Days

• Hourly Paid (Full Time, Part Time)

  • Daily Rate = (FTE Hours ÷ FTE Days) × Hourly Rate

Where FTE is not present at employment level, the system refers to the Job Title FTE. Where FTE is not available at either level, the daily rate will be £0.00.

• Hourly Paid (Flexible)

  • Daily Rate = Average Hours Per Day × Hourly Rate

    • Where Average Hours Per Day = Total Hours in the Last 52 Weeks ÷ Total Days in the Last 52 Weeks

CSP is only paid on qualifying absence days, where the day is ticked as a qualifying day within the Days Usually Worked section of the absence record.

CSP and SSP Interaction

Where SSP is payable alongside CSP, the SSP amount is deducted from the calculated CSP figure. This ensures the employee receives their correct total sick pay without being overpaid, as CSP is intended to top up or replace SSP rather than pay on top of it.

No rounding is applied to the CSP calculation until the final value is added to the payslip, at which point it is rounded to two decimal places once only.

Running Example

Our example employee is salary paid, full time, absent from 1st to 15th August 2026 with a Monday to Friday working pattern giving 10 qualifying days. With an annual salary of £46,532.01 and 5 weekly qualifying days:

• Daily Rate = (£46,532.01 ÷ 52) ÷ 5 = £178.9692692308

• Total CSP (before SSP offset): 10 × £178.9692692308 = £1,789.692692308

Where SSP is not payable alongside CSP, the payslip value rounds to £1,789.70.

Where SSP is payable at the same time, the SSP amount is deducted before rounding. Using the SSP figure from our earlier example of £246.50:

• £1,789.692692308 - £246.50 = £1,543.192692308, which rounds to £1,543.20 on the payslip.

In this scenario, the employee receives a total sick pay of £1,543.20 (CSP) + £246.50 (SSP) = £1,789.70, equivalent to their full daily rate across the 10 qualifying days.

Payslip Representation (CSP)

During Payroll Processing

While a payroll is open and not yet closed, CSP appears on the payroll summary as a separate pay element labelled Company Sick Pay. 

Employee Payslips

Once payroll is closed and payslips are generated, this element appears on the employee's payslip as CSP.

CSP always appears as its own separate pay element and is never combined with other pay elements.

CSP Entitlement Reset

CSP entitlement resets at midnight on the date determined by the Absence Period Based On configuration within the employee's contract. The reset happens automatically overnight and does not require any manual intervention. For full details on the available reset options, refer to the Configuring CSP Entitlements article.

Where an absence spans a reset date, the system handles the split automatically. CSP will be paid for qualifying days up to the reset date, and the employee's entitlement will refresh from midnight on that date. CSP will then continue to be paid for qualifying days after the reset, drawing from the refreshed entitlement.

Absence Record Breakdown

The Absence Record Breakdown provides a day-by-day view of SSP and CSP calculations for an individual absence record, directly within the employee's absence screen. The values shown match exactly what the payroll calculation engine produces, ensuring figures tie out with payroll outputs and exports. If an absence record is edited and recalculated, the breakdown updates automatically to reflect the new figures.

How to view the breakdown

To see the Absence breakdown, go to either:

• HR Module > Employees > Employee List > Find & Select Employee > Employee HR Info > Absences
• Payroll Module > Employees > Employee List > Find & Select Employee > Employee Info > Absences

Then where the employee has an absence record, select the button in the Breakdown column:

This will expand the UI to present the breakdown for that Absence record:

• The view is read-only and cannot be edited from this panel.
• Values shown match exactly what the payroll calculation engine produces, so they'll tie out with payroll outputs and exports.
• If the absence record is later edited and recalculated, the breakdown updates automatically to reflect the new figures.

What the breakdown shows

The breakdown is split into two halves: the left side covers Statutory Sick Pay, and the right side covers Company Sick Pay.

At the bottom of the breakdown, a summary row shows the overall totals for the absence record:

Note: These figures will only update once the relevant payroll has closed, meaning the figures have actually been paid.

Further Reading & Resources

This article has covered how SSP and CSP are processed and managed within Fourth's HR & Payroll system. For further context on the legislative framework underpinning SSP, or for guidance on configuring absence and CSP settings, refer to the articles below.

• SSP Legislation, Eligibility & Calculations - The legislative framework underpinning SSP, including eligibility, AWE, PIWs, linked absences, and the 28 week cap
• Configuring CSP Entitlements - Full guidance on configuring CSP within a contract
• Configuring Absence Types - How absence types are configured, including SSP and CSP payment settings
• Absence Related User Permissions & Portal Settings - Full breakdown of permissions and global settings that affect absence processing
• Creating Absences in Days - How to record day-based absences in the system
• Creating Absences in Hours - How to record hours-based absences in the system
• Absence (Sickness) Data Imports - How to import absence records in bulk
• WFM UK | HR & Payroll: Absence (Sickness) - Return to the main contents page for the full suite of absence articles

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