UK Act of Parliament 1992 United Kingdom

SSCBA 1992

Social Security Contributions and Benefits Act 1992

What this means for your business

10 obligations
19 guides
Enforced by
IPO, OPSS, ECJU
Applies to
United Kingdom
On this page
10 compliance obligations, 19 practical guides across 5 topics
Read full text on legislation.gov.uk

What you must do

10 compliance obligations under this legislation.

Management duties 2

Agree and maintain qualifying days for Statutory Sick Pay

You must agree with each employee which days of the week count as qualifying days for Statutory Sick Pay (or follow the regulations if no agreement is reached). Every week must contain at least one qualifying day, and the agreed days must be recorded. This determines when an employee can start receiving SSP.

Employer s.154 HMRC When determining or administering Statutory Sick Pay for an employee

Manage funding and recovery of statutory maternity pay

When you pay statutory maternity pay (SMP) to an employee, you must keep the appropriate records and follow HMRC's rules to claim any funding or reimbursement you’re entitled to. This means treating any contribution deductions as payments to HMRC and, where applicable, filing a claim for recovery under the regulations.

Employer s.167 HMRC When you make a statutory maternity pay payment to a qualified employee

Payments and fees 8

Do not pay Class 3 contributions if not entitled

If you already pay Class 1 or Class 2 National Insurance, or your earnings for a tax year meet the qualifying earnings level, you cannot also make a voluntary Class 3 contribution for that year. Check your earnings and NI record before paying.

Any Person s.14 HMRC When your earnings factor for the tax year equals or exceeds the …

Pay Class 1B secondary NI contributions for PAYE settlement agreements

If your business has a PAYE settlement agreement – an arrangement where you pay your employees’ income tax to HMRC – you must also pay a Class 1B secondary National Insurance contribution. The contribution is calculated at the secondary rate on the earnings covered by the agreement plus the total tax you’ve paid under the agreement.

Employer s.10A HMRC When you have a PAYE settlement agreement for a tax year and …

Pay required National Insurance contributions

If you employ people, work for an employer, or are self‑employed, you must pay the National Insurance contributions (Class 1, 1A, 1B, 2, 3, 3A or 4) that fund state benefits and the NHS. The contributions are calculated on earnings or profits and must be sent to HMRC on the statutory dates. Failure to pay means the contribution liability remains and HMRC can take enforcement action.

Any Person s.1 HMRC When you have employees, earn qualifying earnings, or are self‑employed and therefore …

Pay statutory paternity pay for eligible adoption cases

If one of your employees meets the adoption‑related criteria (26 weeks continuous employment, earnings above the lower earnings limit, and has chosen to receive statutory paternity pay), you must pay them the statutory paternity pay they are entitled to. This duty applies regardless of the size or type of your business.

Employer s.171ZB HMRC Employee satisfies all conditions in s.171ZB(2) – continuous 26‑week employment, earnings above …

Pay statutory paternity pay to eligible employees

If one of your employees qualifies for statutory paternity pay – they have the right relationship to the child, have been with you for at least 26 weeks up to the relevant week, earn above the lower earnings limit and stay employed until the baby is born – you must pay them the statutory amount for the period of paternity leave. The payment must be made in line with the normal payroll schedule and at the rate set by HMRC.

Employer s.171ZA HMRC Employee meets the statutory paternity pay eligibility criteria (relationship to child, 26 …

Pay statutory sick pay and give exit statements to employees

When an employee is off work because of illness, you must work out the correct ‘period of entitlement’ and pay statutory sick pay (SSP) up to the legal maximum. If an employee is leaving (or has left) your business, you also have to give them the prescribed SSP statement.

Employer s.153 HMRC Employee is sick and qualifies for SSP; or employee is about to …

Pay statutory sick pay only after proper sick‑leave notification

You must make sure any employee who is eligible for Statutory Sick Pay (SSP) has officially told you they are unable to work, and that they have done so within the time limit set by the regulations. If you have not received the required notice, you can withhold the SSP for that day.

Employer s.156 HMRC Employee is entitled to SSP for a qualifying day and the employer …

Pay statutory sick pay to eligible employees

If one of your staff is off work because they are ill and meets the statutory conditions (as set out in sections 152‑154), you must pay them Statutory Sick Pay for each qualifying day. You cannot contract out of this obligation or make the employee pay for it, and any deductions must follow the limited rules in the Act.

Employer s.151 HMRC Employee has a day of incapacity for work and satisfies the qualifying …

Practical guidance

Our guides explain how to comply with the requirements above.

Sections and provisions

304 classified provisions from this legislation.

40 Duties 1 Offences and penalties 61 Powers 62 Definitions 30 Exemptions

Duties 40

  • s.1 Outline of contributory system. such year is equal
  • s.10A Class 1B contributions those general earnings
  • s.13A Right to pay additional Class 3 contributions in certain cases
  • s.14 Restriction on right to pay Class 3 contributions. other repayable contributions are
  • s.30A Incapacity benefit: entitlement.
  • s.37 Widowed mother’s allowance : deaths before 9 April 2001. The widow
  • s.41 Long-term incapacity benefit for widowers. subsequent entitlement
  • s.48BB Category B retirement pension: entitlement by reference to benefits under section 39A or 39B. time prior
  • s.48B Category B retirement pension for widows and widowers. other is entitled
  • s.48A Category B retirement pension for married person or civil partner
  • s.51 Category B retirement pension for widows, widowers and surviving civil partners who attained pensionable age before 6 April 2010 other is entitled
  • s.55AA Shared additional pension because of a new state scheme pension credit
  • s.56 Child’s special allowance - existing beneficiaries. s special allowance
  • s.60 Complete or partial failure to satisfy contribution conditions. such regulations
  • s.64 Entitlement.
  • s.66 Attendance allowance for the terminally ill. allowance
  • s.70 Carer’s allowance. other requirement as
  • s.75 Persons who have attained pensionable age person
  • s.77 Guardian’s allowance. be entitled
  • s.79 Age addition. category under this Act
  • ... and 20 more duties

Offences and penalties 1

  • s.113 General provisions as to disqualification and suspension.

Powers 61

  • s.13 Class 3 contributions.
  • s.14C Class 3A contributions: power to change eligibility or remove the option to pay
  • s.14B Class 3A contributions: repayment
  • s.18 Class 4 contributions recoverable under regulations.
  • s.18A Class 4 contributions: partnerships
  • s.19 General power to regulate liability for contributions.
  • s.23 Provisions supplemental to sections 21 and 22.
  • s.24 Records of earnings and calculation of earnings factors in absence of records.
  • s.25B Power to amend provisions as to days of entitlement.
  • s.30C Incapacity benefit: days and periods of incapacity for work.
  • s.35 State maternity allowance for employed or self-employed earner.
  • s.45B Reduction of additional pension in Category A retirement pension: pension sharing.
  • s.54 Category A and Category B retirement pensions: supplemental provisions.
  • s.55B Reduction of shared additional pension: pension sharing.
  • s.55A Shared additional pension because of an old state scheme pension credit
  • s.62 Graduated retirement benefit.
  • s.67 Exclusions by regulation.
  • s.74 Mobility component for certain persons eligible for invalid carriages.
  • s.86A Incapacity benefit: increase for adult dependants.
  • s.89 Earnings to include occupational and personal pensions etc. for purposes of provisions relating to increases of benefits in respect of ... adult dependants.
  • ... and 41 more powers

Definitions 62

  • s.2 Categories of earners. employed earner self-employed earner
  • s.3 “Earnings" and “earner".
  • s.4A Earnings of workers supplied by service companies etc. the intermediary the applicable provisions of this Act relevant payments or benefits
  • s.4AA Limited liability partnerships
  • s.4 Payments treated as remuneration and earnings. sickness payment
  • s.4B Earnings: power to make retrospective provision in consequence of retrospective tax legislation relevant power relevant contributions legislation the relevant time
  • s.5 Earnings limits and thresholds for Class 1 contributions.
  • s.6A Notional payment of primary Class 1 contribution where earnings not less than lower earnings limit.
  • s.7 “Secondary contributor".
  • s.8 Calculation of primary Class 1 contributions.
  • s.9 Calculation of secondary Class 1 contributions.
  • s.10ZBA Liability of third party controller of sporting testimonial
  • s.10ZB Non-cash vouchers provided by third parties.
  • s.11 Class 2 contributions Relevant profits For relevant purposes
  • s.11An Relevant profits to be included in self assessment tax return relevant profits
  • s.12 Late paid Class 2 contributions. the contribution year") earlier than the tax year in which it is paid (“the payment year"). 2) Subject to subsections (3) and (4) below, the amount of a contribution to which this section applies shall be the amount which the earner would have had to pay if he had paid the contribution in the contribution year. 3) Subject to subsections (4) and (6) below, in any case where— a) the earner pays an ordinary contribution to which this section applies after the end of the tax year immediately following the contribution year; and b) the weekly rate of ordinary contributions for the week in respect of which the contribution was payable in the contribution year differs from the weekly rate applicable at the time of payment in the payment year, the amount of the contribution shall be computed by reference to the highest weekly rate of ordinary contributions in the period beginning with the week in respect of which the contribution is paid and ending with the day on which it is paid. 4) The Treasury may by regulations direct that subsection (3) above shall have effect in relation to a higher-rate contribution to which this section applies subject to such modifications as may be prescribed. 5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6) The Treasury may by regulations provide that the amount of any contribution which, apart from the regulations, would fall to be computed in accordance with subsection (3) ... above shall instead be computed by reference to a tax year not earlier than the contribution year but earlier— a) ... than the payment year; ... b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8) In this section— - “ordinary contribution higher-rate contribution
  • s.14A Class 3A contributions in return for units of additional pension
  • s.15 Class 4 contributions recoverable under the Income Tax Acts.
  • s.19B Extended meaning of “benefit” etc in Part 1
  • s.20 Descriptions of contributory benefits. long-term benefit short-term benefit
  • ... and 42 more definitions

Exemptions 30

  • s.6 Liability for Class 1 contributions.
  • s.9A The age-related secondary percentage
  • s.9B Zero-rate secondary Class 1 contributions for certain apprentices
  • s.10 Class 1A contributions ...
  • s.10ZA Liability of third party provider of benefits in kind.
  • s.17 Exceptions, deferment and incidental matters relating to Class 4 contributions.
  • s.39A Widowed parent’s allowance.
  • s.40 Long-term incapacity benefit for widows.
  • s.44A Deemed earnings factors.
  • s.45AA Effect of working families' tax credit and disabled person's tax credit on earnings factor
  • s.48 Use of former spouse’s contributions.
  • s.51A Special provision for married people.
  • s.51ZA Special provision for married person whose spouse changed gender
  • s.52 Special provision for surviving spouses.
  • s.72 The care component.
  • s.76 Disability living allowance - supplementary.
  • s.88 Increases to be in respect of only one adult dependant.
  • s.91 Effect of trade disputes on entitlement to increases.
  • s.105 Increase for exceptionally severe disablement.
  • s.107 Adjustments for successive accidents.
  • ... and 10 more exemptions

Official guidance

Authoritative sources from regulators explaining this legislation.