UK Payroll Software

SSP Transitional Protections 2026: PAYE RTI Checklist

Elena Segura

Cofounder

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Givver is officially recognised by HMRC (HM Revenue & Customs) as a payroll software provider. This recognition means our software has met HMRC’s standards, passed their testing process, and is listed on the official GOV.UK site. We’re committed to upholding the quality and compliance that come with this recognition.

Quick overview

From 6 April 2026 new transitional protections for Statutory Sick Pay (SSP) will come into effect. If you build payroll software or run payrolls, this will affect how some employees’ SSP is calculated and reported to PAYE RTI. Read the guidance as soon as it’s published, then use the checklist below to get compliant fast.

Why this matters

These transitional protections change entitlement rules for a subset of employees. That means payroll engines might calculate different SSP amounts, and reporting may need to reflect protected periods or adjusted pay rates. Get it wrong and employers face corrections, frustrated staff, or compliance headaches. So act now.

Who needs to act

Payroll software developers — update logic, tests, and documentation.
Payroll teams in businesses — check vendor updates and update internal processes.
Accountants and payroll processors — advise clients and run checks before April.

Immediate actions (start here)

Review the final DWP guidance and GOV.UK pages as soon as they’re published.
Identify impacted cases in your payroll data — look for employees with prior protected entitlements or specific employment histories that might trigger transitional rules.
Map the change to your codebase: mark functions that calculate SSP, and add feature flags where needed so you can roll changes safely.
Update calculations where protected pay or service affects SSP amounts. Use clear unit tests that assert both legacy and protected outcomes.
Check RTI reporting for any new fields or flags and ensure submissions include required metadata.

Technical checklist for developers

Audit current SSP calculation modules and identify assumptions that won’t hold under transitional rules.
Introduce a test dataset that mirrors protected and non-protected employee histories.
Version changes so employers can choose when to apply them in production runs during the transition window.
Log adjustments at the transaction level. Keep an audit trail for any retroactive corrections.
Ensure error handling and clear validation messages for payroll processors when data is incomplete.

Testing and rollout

Run parallel payrolls for a sample group. Compare current outputs vs. protected-rule outputs.
Use sandbox environments and publish release notes for any API or RTI schema changes.
Coordinate with HMRC Developer Hub guidance and any test facilities they provide.
Schedule a staged rollout. Don’t flip everything live on day one unless you’ve validated results.

Communicating to employers and employees

Tell employers what will change, why some SSP payments may look different, and when corrections might appear.
Provide clear, plain-language notes for payroll teams so they can explain changes to staff who ask.
Prepare templated emails and FAQs for common scenarios — for example, employees returning from long-term absence or those with prior entitlements.

Example scenarios (simple)

Employee A has a protected entitlement from previous service. Their SSP calculation may differ from Employee B’s even though both are off sick for the same duration.
Employee B’s record is incomplete. That may delay correct SSP application until history is reconciled. Flag these during data validation.

Timeline and priorities

Now: Read official guidance and inventory impacted code and data.
Next 2–6 weeks: Build changes, create tests, and run internal parallel payrolls.
Before 6 April 2026: Complete testing, publish updates, and communicate with clients.
After go-live: Monitor submissions, reconcile differences, and be ready to issue corrections.

Common questions

Will I need to change reports? Maybe. If protected status affects pay lines or calculation logic, update reporting templates so figures match payroll runs.
Do employers need to collect extra data? Possibly. Capture any historical employment or entitlement details that the guidance says matter.
Can corrections be automated? Yes — but only after you’ve validated rules and have a clear audit trail.

Final note

This is a practical update, not a legal brief. Read the official DWP and GOV.UK guidance for the legal details, then apply the steps above to reduce risk and smooth your April rollout. If you’re a vendor, ship clear release notes and testing guidance. If you run payroll, prioritise data checks and ask your provider about their test results.