How do I set up a pension scheme in Platinum Payroll?
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Contents
Summary
The following article explains how to setup a Pension Scheme if you offer one to your employees, you must set up the Parameters on the Payroll system. This enables the system to correctly calculate contributions.
Details
- Go to "Payroll" -> "Payroll Parameters/Maintenance" -> "Company Parameters" -> "Period Adjustments"
Your screen will resemble the screen displayed below:
Pension Schemes
<---- Employee ----> <-- Employer -->
Description TAX % %/Value Lim % %/Value Lim Reb SCON. Lim
1 COSR Pension N Y 0.00 B Y 0.00 B S B
2 COMP Pension N Y 0.00 B Y 0.00 B M B
3 N Y 0.00 B Y 0.00 B B
4 N Y 0.00 B Y 0.00 B B
5 N Y 0.00 B Y 0.00 B B
6 N Y 0.00 B Y 0.00 B B
7 N Y 0.00 B Y 0.00 B B
8 N Y 0.00 B Y 0.00 B B
9 N Y 0.00 B Y 0.00 B B
10 N Y 0.00 B Y 0.00 B B
Employer Parameters
If the Employer is also contributing to the Pension Scheme, you will need to make sure the Employer Parameters are also set up correctly.
%
Is the Employer 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 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 employer (the Pensionable Gross may be limited by the Upper & Lower NI Limits).
- Actual Value: The Actual Value the employer will contribute to the Pension Scheme.
Limits
Define the NI Limits to be applied to the Employer's Pensionable Gross if Percentage Calculations are to be used.
- 'N' - Calculate the Pension on the Whole Pensionable Gross.
- 'L' - Limit calculations to the Lower NI Limit only.
- 'U' - Limit calculations to the Upper NI Limit only.
- 'B' - Apply the percentage to the Pensionable Gross between the Lower and Upper Limits minus the Lower Limit.
Other Parameters
Reb
Is the Payroll to calculate the NI Contracted Out Rebate?
- 'S' - this is a Salary Related Pension
- 'M' - this is a Money Purchase Pension
- ' ' - Leave blank if this pension scheme is not contracted out.
SCON
If this is a Contracted Out Pension Scheme, enter the SCON "S4" value provided.
- Enter the SCON value provided.
Lim
What NI Limits are to be used to calculate NI Rebates?
- 'N' - Calculate the Pension on the Whole Pensionable Gross.
- 'L' - Limit calculations to the Lower NI Limit only.
- 'U' - Limit calculations to the Upper NI Limit only.
- 'B' - Apply the percentage to the Pensionable Gross between the Lower and Upper Limits minus the Lower Limit.
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.
