Difference between revisions of "How do I set up a pension scheme in Platinum Payroll?"
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== See also == | == See also == | ||
* [[How do I Prepare for Automatic Enrolment?]] | * [[How do I Prepare for Automatic Enrolment?]] | ||
| + | * [[How do I Add Pension Company Details to my Pension Letters?]] | ||
| + | * [[How do I Edit my Auto Enrolment Letters?]] | ||
* [[Links to Pension Providers]] | * [[Links to Pension Providers]] | ||
| + | * [[How do I Run a Payroll Period?]] | ||
* [[How do I Add a New Employee to the Payroll?]] | * [[How do I Add a New Employee to the Payroll?]] | ||
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{{KB_Tags|Pension, scheme, payroll, Parameters, auto enrolment, auto enrol, nest, royal london, now, people's pension, peoples pension}} | {{KB_Tags|Pension, scheme, payroll, Parameters, auto enrolment, auto enrol, nest, royal london, now, people's pension, peoples pension}} | ||
{{KB_PR}} {{ZN_Admin}} | {{KB_PR}} {{ZN_Admin}} | ||
Revision as of 13:46, 22 August 2016
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This article or section is out of date and scheduled for a review. Be aware: Content may not match the current version of Platinum. |
Contents
Summary
The following article explains how to set up Pension Schemes. This enables the system to calculate contributions correctly.
More Information
- Go to " Payroll Payroll Parameters/Maintenance Company Parameters Period Adjustments".
General Details
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. There is information required for both the Employee and the Employer, depending on whether the employer contributes to the scheme. Most of the fields and their purpose are the same for both employee and employer and are explained below.
Description
Enter a description for the pension scheme.
Tax
What is the tax and NI treatment of the employee contributions? If you are not sure, check with your pension adviser.
- 'Y' - Yes. The contribution made by the employee is subject to tax. I.e. it is included in taxable gross pay. This is the "Relief at Source" method.
- 'N' - No. The contribution made by the employee is not subject to tax. I.e. it is not included in taxable gross pay. This is the "Net Pay" method.
- 'S' - Salary Sacrifice. The notional employee contribution is paid by the employer and is not subject to tax or NI. I.e. it is not included in taxable gross pay or earnings for NI purposes. This is the "Salary Sacrifice" method.
- Click this link to check the definition of the type of scheme you are involved with Workplace pensions and tax relief
 | Note: If you choose to run the NEST scheme for auto-enrolment, the contributions are taxed at source and are generally a percentage of Gross Pay. NEST reclaim the tax from HMRC and add it to your pension contributions. This means that you will need to reduce the percentage deducted from the employee by the basic rate of tax and set this "Tax" flag to 'Yes'. Do NOT reduce the percentage for the employer. For example, if the employee and employer are contributing '1%' each to the scheme with the basic rate of tax at 20%, then the employee percentage should be '0.80%' (1-0.2), while the employer percentage should be left at '1%'.
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%
Is the Value, entered in the "%/Value" column to the right, a Percentage?
- 'Y' - Yes, the value is a Percentage.
- 'N' - No, the value is an Actual Value.
%/Value
Enter the 'Percentage' or 'Actual Value' which the employee or the employer will contribute to the pension scheme. This is a default field which can be left blank. When you are linking a scheme to an employee you can amend the employer's contribution for an individual, if it differs from the default.
- Percentage: - The Percentage of the Pensionable Gross to contribute to the pension by the employee or employer (the Pensionable Gross may be limited by the Upper & Lower NI Limits).
- Actual Value: The Actual Value the employee or employer will contribute to the Pension Scheme.
| Note: You will need to know how tax relief applies to the Employee contributions. You should find this out from your pension provider. Under the NEST scheme, the tax relief is claimed "at source", in other words, NEST claim the tax back from HMRC. In these circumstances, to deduct the correct figure you will need to reduce the employee percentage contribution by the basic rate of tax as noted above. Do NOT reduce the employer contribution. |
Limits
Define the NI Limits to be applied to the Pensionable Gross if Percentage Calculations are to be used.
- 'N' - Calculate the Pension on the Whole Pensionable Gross.
- 'L' - Limited to the NI Lower Earnings Limit only.
- 'U' - Limited to the NI Upper Earnings Limit only.
- 'B' - Apply the percentage to pensionable gross between the NI Lower Earnings Limit and Upper Earnings Limit.
- 'E' - Limited to the NI Upper Earnings Limit only (now same as 'U' but differed previously).
- 'O' - Apply the percentage to pensionable gross between the NI Lower Earnings Limit and Upper Earnings Limit (now same as 'B' but differed previously).
To allocate a Pension Scheme to an employee, see Employee Amendments - TAX, NI & Pension. 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.
See also
- How do I Prepare for Automatic Enrolment?
- How do I Add Pension Company Details to my Pension Letters?
- How do I Edit my Auto Enrolment Letters?
- Links to Pension Providers
- How do I Run a Payroll Period?
- How do I Add a New Employee to the Payroll?
