New Pension Entitlement Set Up
First, you would need to set New Pension Entitlement. To do so you would:
- Go to Payroll Administration > United Kingdom > Pension: Entitlements
- Click "New Pension Entitlement"
- Set the Name for example “Zone Sal Sac”
- Employee Sub Type is "Employee Pension (pre-tax)”
- Set the Employee and Employer percentages
- Pension Type is "Workplace Pension"
- Percentage Type is "Pension Entitlement"
- You can override threshold is you need to (e.g. set lower limit to 0.00 and upper limit to 999,999,999.00) if these should not be included in the percentage calculation
- Make sure you tick "Create Pay Component" checkbox
- Set the Employer and Employee AP Accounts and the Expense Account
- Earnings Trigger set to 10,000
- Earnings Trigger Percent Type = Base for Pension
- Anything else you need to set e.g Postponement months to 3
- For a Salary Sacrifice Pension if you are applying a NIC Saving Percentage you will need to enter the percentage into the field “NIC Saving Percentage”. This needs to be the Employer NICs Percentage e.g. 13.8%.
Please note that if you are changing Pension scheme it needs to be from the first of the month.
End Date Pension Pay Components
Second, you would need to end date all of the Pension Pay Components for those that are moving onto this Pension Scheme (both employee and employer pay components).
This could be done either manually on the employee record, by running a search and inline editing the end dates or by CSV import.
If you decide to do it by inline editing, you would do a search on Pay Components:
-
- go to Payroll > Payroll Records > Employee Pay Components
- use PR-Classification Search (or you could run your own search)
- filter out by Pay Component Type: Pensions (please be aware if they are Relief at Source the employee pension pay component will by type Deduction)
- check the box for inline edit and set the End Date
If you decide to do it by CSV:
- Download the search as CSV
- Open the downloaded file and enter end dates
- Save
- Go to Payroll > Payroll Setup > Import CSV Records
- Import Type: Custom Records
- Record Type: Pay Component
- Select the CSV file
- Import Options: Update
- Map Internal ID and End Date
- Run
Employee's Pension Pay Components Set Up
Third, you would need to create Employee's Pay Components that are moving onto this Pension Scheme.
This could be done either manually on the employee record, by running a search and inline edit or by CSV import.
Creating new Employee Pay Components for the new pension entitlement by CSV
- Create a new CSV file for uploading
- Create column with Internal ID of the employees with new pension entitlement
- Create column for the new entitlement name you created
- Create column with Pension Start Date
- Save as CSV
- Run CSV import (go to Payroll > Payroll Setup > Import CSV Records)
- Record Types: Employees
- Import Options: Update
- Advanced Options - make sure the tickbox for Run Server SuiteScript and Trigger Workflows is checked
- It should be automatically mapped as long as the same headers are used
- Run (Save if you wanted to use in the feature)
As you have “Create Pay Components” ticked on the Pension Entitlement this will create the new Pay Components on the employee record with the Start Date of the updated Pension Start Date.
However, this will not create the linked NICs Saving Pay Components.
You will need to Edit each of the Employee Pension pay components to create the NICs Saving pay component. Once created this links to the employee pension (pre tax) pay component (they are linked to each other).
- Go to employee's record (Payroll Administration > Payroll Records > Employees)
- Scroll down to the Pay Components section
- Select the Employee Pension Pay Component
- Open in Edit
- Once opened, scroll down to the UK section and enter the NIC saving percentage (e.g. 13.8%)
- Save
- This now creates the NIC Saving Pension Pay Component
This means that if the employee updates their pension contribution percentage, this also updates the NICs Savings Percentage.