Trusts for particular purposes: employer sick pay schemes
Employers create sick pay schemes to meet employee sick pay and/or medical expenses. The schemes are funded in one of two ways.
- The 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.
- The employer makes sums available to the trustees periodically. These are made before payments of sick pay/ medical expenses are due.
Some schemes/ funds provide for employees to make contributions. Treat these the same as the others.