How do I configure Pension on company level?

How do I configure Pension on company level?

Pension Auto Enrolment in the United Kingdom requires employers to automatically enroll eligible employees into a workplace pension scheme. 

Step 1: Company pension setup.

Before any assessments take place, the employer details and duty must be advised on the company-level Pension screen. Here, the employer’s Duties start date and the next re-enrolment date will be maintained. 

If the employer is exempt from automatic enrolment, then it should be advised on the Pension screen by selecting the appropriate exemption reason.

It is crucial that this screen is setup correctly, as the staging/duties start date cannot be edited after the first run is closed. Ensure all fields marked with an Asterix are completed.

      Navigate > Pension

Access the Pension Auto Enrolment screen on the top of the title bar.

      

Complete the fields as required and select to save.

      

Step 2: The pension funds and schemes must be set up on company level. The fund setup dictates the calculations that take place on employee payslips.

Navigate to the Component Tables Configuration screen using the following navigation path:

      Navigate > Configuration > Dropdown Management > Component Tables Configuration

Select Company Group as the Configuration Level and click on Pension Funds to set up a pension scheme.

Click on the Add icon and capture the field information to add a pension fund. Ensure all fields marked with an Asterix are completed.

      

Step 3: The following components are unique to this tax country. 

The Pension components will only calculate and return on the employees’ payslip if the employee has an Auto enrolled, Enrolled, Joined or Opted in Enrolment status on the employee’s Pension screen. However, all components will be visible on the employee's Recurring Payroll Components
screen.

Allowance component:

Employee Pension Fund Salary Sacrifice - This component will only calculate if the Contribution Type on the Pension Fund setup is Salary sacrifice. The Employee Contribution will return as a negative value. Pension as a salary sacrifice, no longer needs to be set up as a ‘In package’ component.

Multiple instances of this component are not allowed.

Deduction components:

1. Pension AVC - Advised input.
2. Pension Fund - The employee contribution is dependant on the Input Type advised on the company Pension Fund set up.
  1. If the Input Type is Amount, then the full Employee Contribution value will return.
  2. If the Input Type is Percent, then the Pensionable Earnings are multiplied by the percent.
Further to this, the contribution is also dependent on the Contribution Type selected on the company Pension Fund set up.
  1. If the Contribution Type is Deduct before tax (net pay arrangement) then the full employee contribution will return.
  2. If the Contribution Type is Deduct after tax (relief at source) then the employee contribution is multiplied by 80% and then returned.
  3. If the Contribution Type is Salary sacrifice then the employee contribution is suppressed to 0.00.
Multiple instances of this component are not allowed.

3. Pension Refund - Advised input

Company contribution component:

The company contribution component controls all the other statutory components. When an employee is onboarded, they are automatically linked to the default Pension fund on the employee's Recurring component. However, this will only trigger a payslip calculation once eligibility is determined. 

      Navigate > Employee > Payroll Processing > Recurring Payroll Components > Company Contributions

If the employee should be linked to a different Pension Fund, then it should be done on the Company Contribution component on the employee's Recurring Payroll Components screen.