Difference between revisions of "How do I set up a pension scheme in Platinum Payroll?"
From Catalyst
Katy Kitchen (talk | contribs) |
|||
| Line 1: | Line 1: | ||
| − | |||
== Summary == | == Summary == | ||
The following article explains how to set up Pension Schemes, including Auto Enrolment Schemes. This enables the system to calculate contributions correctly. | The following article explains how to set up Pension Schemes, including Auto Enrolment Schemes. This enables the system to calculate contributions correctly. | ||
| Line 10: | Line 9: | ||
* The Pension Company. | * The Pension Company. | ||
| − | * Which Earnings Limits apply e.g. Qualifying Earnings. | + | * Which Earnings Limits apply, e.g. Qualifying Earnings. |
* Whether it is a {{DataValue|Relief at Source - Net Contributions}} or {{DataValue|Nett Pay - Gross Contributions}} scheme. | * Whether it is a {{DataValue|Relief at Source - Net Contributions}} or {{DataValue|Nett Pay - Gross Contributions}} scheme. | ||
* Whether the settings differ for Employee and Employer. | * Whether the settings differ for Employee and Employer. | ||
| Line 20: | Line 19: | ||
What is the tax and NI treatment of the employee contributions? If you are not sure, check with your pension adviser. | What is the tax and NI treatment of the employee contributions? If you are not sure, check with your pension adviser. | ||
| − | * {{DataValue|Y}} - Yes. The contribution made by the employee is subject to tax i.e. the contribution is deducted from Gross Pay after PAYE has been deducted. This is the "Relief at Source" method. | + | * {{DataValue|Y}} - Yes. The contribution made by the employee is subject to tax, i.e. the contribution is deducted from Gross Pay after PAYE has been deducted. This is the "Relief at Source" method. |
| − | * {{DataValue|N}} - No. The contribution made by the employee is not subject to tax i.e. the contribution is deducted from Gross Pay before PAYE is calculated. This is the "Net Pay" method. | + | * {{DataValue|N}} - No. The contribution made by the employee is not subject to tax, i.e. the contribution is deducted from Gross Pay before PAYE is calculated. This is the "Net Pay" method. |
| − | * {{DataValue|S}} - Salary Sacrifice. The notional employee contribution is paid by the employer and is not subject to tax or NI | + | * {{DataValue|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. |
==== % ==== | ==== % ==== | ||
| Line 33: | Line 32: | ||
==== %/Value ==== | ==== %/Value ==== | ||
| − | * {{DataValue|%}} - The percentage to deduct. For a {{DataValue|Relief at Source}} scheme the Employee Percentage should be reduced by 0.2% e.g. a 1% contribution should be entered as 0.8%. Do NOT reduce the Employer contribution. | + | * {{DataValue|%}} - The percentage to deduct. For a {{DataValue|Relief at Source}} scheme the Employee Percentage should be reduced by 0.2%, e.g. a 1% contribution should be entered as 0.8%. Do NOT reduce the Employer contribution. |
* {{DataValue|Actual Value}} - 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. | * {{DataValue|Actual Value}} - 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. | ||
| Line 56: | Line 55: | ||
Please make sure you have completed the Staging Date to activate Auto Enrolment. | Please make sure you have completed the Staging Date to activate Auto Enrolment. | ||
| − | {{Note|text=If your staging date falls in the current [[How do I Run a Payroll Period?|Payroll Period]] please be aware the system may start making deductions immediately.}} | + | {{Note|text=If your staging date falls in the current [[How do I Run a Payroll Period?|Payroll Period]], please be aware the system may start making deductions immediately.}} |
== Allocating a Scheme to an Employee == | == Allocating a Scheme to an Employee == | ||
| Line 68: | Line 67: | ||
* [[How do I Edit my Auto Enrolment Letters?]] | * [[How do I Edit my Auto Enrolment Letters?]] | ||
* [[Links to Pension Providers]] | * [[Links to Pension Providers]] | ||
| − | |||
| − | |||
| − | |||
{{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 09:03, 30 January 2017
Contents
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 " Payroll Maintenance Options Payroll Settings Company Parameters Pension Schemes".
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
Choose the next blank line and enter the scheme name (max 15 characters).
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. the contribution is deducted from Gross Pay after PAYE has been deducted. This is the "Relief at Source" method.
- 'N' - No. The contribution made by the employee is not subject to tax, i.e. the contribution is deducted from Gross Pay before PAYE is calculated. 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.
%
Is the Value, entered in the "%/Value" column to the right, a Percentage?
- 'Y' - Yes, the value is a Percentage. Auto Enrolment schemes are typically a percentage.
- 'N' - No, the value is an Actual Value.
%/Value
- '%' - The percentage to deduct. For a 'Relief at Source' scheme the Employee Percentage should be reduced by 0.2%, e.g. a 1% contribution should be entered as 0.8%. Do NOT reduce the Employer contribution.
- 'Actual Value' - 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.
 | 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. |
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. Typically known as 'Qualifying Earnings'.
- '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). Typically known as 'Qualifying Earnings'.
Automatic Enrolment Scheme
If this is your Auto Enrolment scheme:
- Enter the line number, as shown to the left of the scheme description, in "Automatic Enrolment Scheme".
Please make sure you have completed the Staging Date to activate Auto Enrolment.
 | If your staging date falls in the current Payroll Period, please be aware the system may start making deductions immediately. |
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. |
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
