To process pension contributions in SelectPay, as part of your automatic enrolment (AE) duties, you need to create a pension pay element. To do this, follow the steps below.
Pay element creation
Click Payroll, then click Pay Elements.
Click New Pay Element, then set the type to Deductions.
In the Code field, enter the name of the pay element.
Enter a Quantity of 1.00.
📌Note: Check with your pension provider to see if the scheme requires PAYE checkbox to be selected.
Continue the steps under the required section below.
Fixed pension contribution
A fixed-rate pension is a manually entered static deduction each period. To do this, follow the steps below.
Click the Pension tab.
If it's an AE pension, ensure the Qualifying Pension check box.
Enter the employee and employer contributions.
📌Note: If it is a relief at source pension, select the checkbox, Employee pays net of Basic Rate tax.
Click Save & Close.
Percentage-based pension
Known as a multiple pension, this will calculate a percentage of the employee's eligible earnings each period. To do this, follow the steps below.
Select the Multiple checkbox, then click the Multiple tab.
Select the checkboxes next to the required pay elements.
Click the Pension tab, then enter the employee and employer contributions.
If it's an AE pension, ensure the Qualifying Pension check box.
📌Note: If it is a relief at source pension, select the checkbox, Employee pays net of Basic Rate tax.
Click Save & Close.
Additional Voluntary Contributions (AVC)
Additional voluntary contributions are a separate pay element that works alongside the employee's regular Pension deduction.
Fixed rate
Click the Pension tab.
Enter the employee and employer contributions.
Click the Additional Contribution drop-down.
Click (AVC) Additional Voluntary Contribution.
Deselect the Qualifying Pension check box.
Click Save & Close.
Percentage-based
Select the Multiple checkbox, then click the Multiple tab.
Select the checkboxes next to the required pay elements.
Click the Pension tab, then enter the employee and employer contributions.
Click the Additional Contribution drop-down.
Click (AVC) Additional Voluntary Contribution.
Deselect the Qualifying Pension check box.
Click Save & Close.