How do the contribution types work for the Pension Auto Enrolment feature?

How do the contribution types work for the Pension Auto Enrolment feature?

When configuring a Pension Fund on company level, the following contribution options will be available for selection:

      Navigate > Configuration > Basic Settings > Dropdown Management > Component Tables Configuration

      
  1. Salary Sacrifice – When selected it will reduce the employee pension deduction from the employees package. 
  2. Deduct before tax (net pay arrangement) – When selected it will reduce the employee pension deduction amount from the Total Pay To Date as an allowable in the computation on of Income Tax (PAYE).
  3. Deduct after tax (relief at source) – When selected will not have any system implications. The employee pension deduction will be deducted by the pension provider when it is paid over.

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