Section 4 of the Social Security Contributions and Benefits Act 1992 expands the scope of ‘earnings’ for the purposes of NICs by directing that certain payments are to be treated as earnings.

This provision draws into Class 1 NICs sums which would not otherwise attract a liability because they are not essentially earnings.

The payments which are treated as ‘remuneration derived from employed earner's employment’ by virtue of section 4, and regulations made under it, are:

any sums paid in respect of entitlement to Statutory Sick Pay, Statutory Maternity Pay, Statutory Paternity Pay and Statutory Adoption Pay (see NIM02355)

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