TSEM5075 - Trusts for particular purposes: employer sick pay schemes

Employers create sick pay schemes to meet employee sick pay and/or medical expenses. »Ê¹ÚÌåÓýapp schemes are funded in one of two ways.

  1. »Ê¹ÚÌåÓýapp employer will provide the trustees with sufficient funds to meet sick/ medical expenses already incurred. Or the employer will make such payments as agents for the trustees.
  2. »Ê¹ÚÌåÓýapp employer makes sums available to the trustees periodically. »Ê¹ÚÌåÓýappse are made before payments of sick pay/ medical expenses are due.

Some schemes/ funds provide for employees to make contributions. »Ê¹ÚÌåÓýappse are treated the same as the others.