How do I set up a pension scheme in Platinum Payroll?

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Summary

The following article explains how to set up Pension Schemes, including Auto Enrolment Schemes. This enables the system to calculate contributions correctly.

More Information

Go to " " Reports & Settings Maintenance Options System Administrator Module Settings" Payroll Module Settings"

  • Scroll down to the "Pension Schemes" section.

What do I need to know?

The information that you need to create a pension scheme should be provided by the people who arranged the pension scheme for you, and any questions should first be aimed at them. Please make sure you have these details:

  • The Pension Company.
  • Which Earnings Limits apply, e.g. Qualifying Earnings.
  • Whether it is a 'Relief at Source - Net Contributions' or 'Nett Pay - Gross Contributions' scheme.
  • Whether the settings differ for Employee and Employer.

Pension Details

For each applicable pension scheme, complete the relevant information.

Click on "Pension Description" then click [Edit].

  • Enter the name of the scheme, max 15 characters, e.g. 'NEST'
  • Click [Done].

Click on "Employee percentage" then click [Edit].

  • Specify if the employee deduction will be a percentage ('Y') or specified amount ('N').
  • Click [Done].

Click on "Employee amount" then click [Edit].

  • Depending on your choice for the previous flag enter the employee deduction.
For a 'Relief at Source' scheme, for the 2022-2023 tax year ending on the 5th April 2022 the Employee Percentage remains at '4%'. This takes account of the 20% tax relief on the employee contribution that the pension company will claim from the government which makes up the balance of the 5% Employee contribution.
For a 'Nett Pay' scheme, for the 2022-2023 tax year ending on the 5th April 2021 the Employee Percentage remains at '5%'.
  • Click [Done].

Click on "Employee limit" then click [Edit].

  • Select the NI Limit to apply to the scheme.
    • 'None' - Calculate the pension on the whole pensionable gross.
    • 'NI Lower Earnings' - Apply the NI Lower Earnings Limits (2022/2023 rates)
    • 'NI Upper Earnings' - Apply the NI Upper Earnings Limits (2022/2023 rates)
    • 'NI Both' - NI Qualifying Earnings i.e. NI Upper & Lower Earnings Limits (2022/2023 rates)
    • 'DWP Lower Earnings' - Apply the DWP Lower Earnings Limits (2022/2023 rates)
    • 'DWP Upper Earnings' - Apply the DWP Upper Earnings Limits (2022/2023 rates)
    • 'DWP Both' - DWP Qualifying Earnings i.e. DWP Upper & Lower Earnings Limits (2022/2023 rates)
  • Click [Done].

Click on "Employer percentage" then click [Edit].

  • Specify if the employer deduction will be a percentage ('Y') or specified amount ('N').
  • Click [Done].

Click on "Employer amount" then click [Edit].

  • Depending on your choice for the previous flag enter the employer deduction.
For the 2022-2023 tax year the Employer contribution remains at '3%'.
  • Click [Done].

Click on "Employer limit" then click [Edit].

  • Select the NI Limit to apply to the scheme.
    • 'None' - Calculate the pension on the whole pensionable gross.
    • 'NI Lower Earnings' - Apply the NI Lower Earnings Limits
    • 'NI Upper Earnings' - Apply the NI Upper Earnings Limits
    • 'NI Both' - NI Qualifying Earnings i.e. NI Upper & Lower Earnings Limits
    • 'DWP Lower Earnings' - Apply the DWP Lower Earnings Limits
    • 'DWP Upper Earnings' - Apply the DWP Upper Earnings Limits
    • 'DWP Both' - DWP Qualifying Earnings i.e. DWP Upper & Lower Earnings Limits
  • Click [Done].

Click on "Tax relief"

  • Select the type of scheme and click [Done].
Click this link to check the definition of the type of scheme you are involved with Workplace pensions and tax relief. Queries regarding claiming tax back should be aimed at your Pension Provider.
You must ensure you check your settings and seek clarification from your pension provider and/or accountant if you are unsure of the type of scheme you have enrolled in.

Automatic Enrolment Scheme

  • Select "Automatic Enrolment Scheme" and click [Edit].
  • Choose the number of the scheme then click [Done].

Employer's Duty Start Date (Staging Date)

If not already specified, select this option and enter the date your company joined automatic enrolment.

  • Click [Done].
Please note your re-enrolment date will be based on this date so please ensure it is accurate.
  • To save your settings click [Done] and [Accept].

Allocating a Scheme to an Employee

To allocate an individual Pension Scheme to an employee, go to the [TAX, NI & Pension] page in the Employee record. You can amend the default Employee and Employer's contribution if necessary. You can also enter voluntary top up contributions for both the Employee and the Employer if applicable.

This is not necessary for Automatic Enrolment schemes. The system will set the scheme for you when the first period of enrolment is closed.

For advice or clarification of auto enrolment schemes please speak to your pension provider or view The Pensions Regulator for advice.

See also


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