The Pension Scheme set up has been enhanced as follows
- Basic Scheme Tick Box
- When setting up a pension scheme InPay allows the selection of the basic scheme textbox this has the effect on basing the scheme on the minimum requirement laid out in legislation. (Deductions to be only taken between a lower and upper threshold and at a set percentage – currently 1% for employees, 1 % for employers)
- Set Limits Tick Box
- If the Basic Scheme tick box is selected the functionality will be disabled.
However there are scenarios where employers may wish to only make deductions between a lower and upper threshold but not those set out in legislation. So for example if a lower threshold of 0 was entered and an upper threshold of 1000 then deductions would only be made against the first £1000 of an employee’s salary each period
- Salary Sacrifice & Offset
- Ticking this option means that the pension will show as a notional pay element on the payments side of the payslip. Notional meaning that the pay element will not physically affect the Net or Gross pay.
Salary Sacrifice involves the employee giving up a portion of their Gross Pay. The InPay user has a choice whether to enter the reduced payment into the system or setting a pay element up as an offset when creating the Salary Sacrifice scheme. This second scenario will lead the payment against the element (Basic Pay) being reduced by however much the pension is.
- Use Standard Pay Tick Box
- When a pension scheme is set up the user must pick which pay elements are included to calculate pensionable pay. However if the pensionable elements are to be the same as those that are used to determine whether an employee is above the earnings threshold (see Section 2 of this document), then clicking this textbox will automatically allocate the same set of elements.
The Pension Scheme set up has been enhanced as follows
- Basic Scheme Tick Box
- When setting up a pension scheme InPay allows the selection of the basic scheme textbox this has the effect on basing the scheme on the minimum requirement laid out in legislation. (Deductions to be only taken between a lower and upper threshold and at a set percentage – currently 1% for employees, 1 % for employers)
- Set Limits Tick Box
- If the Basic Scheme tick box is selected the functionality will be disabled.
However there are scenarios where employers may wish to only make deductions between a lower and upper threshold but not those set out in legislation. So for example if a lower threshold of 0 was entered and an upper threshold of 1000 then deductions would only be made against the first £1000 of an employee’s salary each period
- Salary Sacrifice & Offset
- Ticking this option means that the pension will show as a notional pay element on the payments side of the payslip. Notional meaning that the pay element will not physically affect the Net or Gross pay.
Salary Sacrifice involves the employee giving up a portion of their Gross Pay. The InPay user has a choice whether to enter the reduced payment into the system or setting a pay element up as an offset when creating the Salary Sacrifice scheme. This second scenario will lead the payment against the element (Basic Pay) being reduced by however much the pension is.
- Use Standard Pay Tick Box
- When a pension scheme is set up the user must pick which pay elements are included to calculate pensionable pay. However if the pensionable elements are to be the same as those that are used to determine whether an employee is above the earnings threshold (see Section 2 of this document), then clicking this textbox will automatically allocate the same set of elements.
Figure 3.1