Salary sacrifice reduces the employee's gross pay, resulting in lower tax and NI contributions for both the employee and employer. To add the employer's NI savings to the employee's pension, follow the steps below.
📌Note: Employer NI saving can't be enabled for a director.
Click Payroll, then click Pay Elements.
Click the required pension pay element, and click Open Pay Element.
Click the Pension tab.
Enter the desired percentage, from 1 to 100.
Click Save and Close.
The update can then be pushed out to all employees with the pay element assigned, using the update standard pay element wizard.