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
- Salary Sacrifice – When selected it will reduce the employee pension deduction from the employees package.
- 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).
- 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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