Values

Use this tab to specify the default values to be applied to the gross pay when the system calculates the pension contribution for the specified scheme. You can specify contributions expressed as a percentage of employee pay, as a value, or both.

Value – Employee

Type the value of the employee’s gross pay that is to be deducted as a pension contribution for the specified scheme. The value you enter is a default value. You can amend it for an individual employee in their pension record.

Value – Employer

Type the value of the contribution that the employer makes towards an employee’s pension. The value you enter is a default value. You can amend it for an individual employee in their pension record.

Percent – Employee

Type the percentage of an employee’s gross pay that is to be deducted as a pension contribution for the specified scheme. The value you enter is a default value. You can amend it for an individual employee in their pension record.

This field is not available when Rate Type on the References tab is set to Contribution Bands. This is because an employee’s pension contribution percentage depends on the contribution band into which their pensionable pay or WTE falls. You set the contribution bands and associated employee percentages for a pension scheme by using the Start Value and Employer’s Normal fields.

Percent – Employer

Type the percentage of the contribution that the employer makes towards an employee’s pension. The value you enter is a default value. You can amend it for individual an employee in their pension record.

Use the following two fields (Start Value and Employer’s Normal) to set the pay bands and associated percentages for a banded pension scheme. These fields are available only when Rate Type on the References tab is set to Contribution Bands.

In a banded pension scheme, you can set up several pay bands, such as £1 – £11,999.99, £12,000.00 – £13,999.99, £14,000.00 – £17,999.99, and so on, as shown in the following table. Each band has an employee’s contribution percentage associated with it. For example, for the band £1 – £11,999.99, an employee’s contribution might be 5%.

Contribution Bands and Percentages        
Pay Band Employee
1 5.0
12000 5.5
14000 5.8
18000 6.0
25000 7.0
500000 8.0

Start Value

Type the start of the range for the first band. This is an annual value, for the pay band.

For example, if all employees earning between £12000 to £13999 pay 5.5%, type 12000 in this field. After you define the employee’s percentage for the band in Employer’s Normal, click Save to save the details and then enter the details for the other pay bands.

Employer’s Normal

Type the employee percentage for the pay band defined in Start Value.

For example, if you want to define the percentage for the first pay band, which is 5.5%, and this is for all employees earning up to £12000 (as defined in Start Value), type 5.5% in this field. After you define the employee’s percentage for the band, click Save to save the details and then enter the details for the other pay bands.

Save

Click Save after you enter the pay band and associated employee percentage, to save the band details. You can then add details for other bands.

Edit

Click Edit to edit a selected pay band’s details. Select a row in the list, and then click Edit. You can then amend the values in the Start Value and Employer’s Normal fields.

Remove

Click Remove to delete a selected pay bands details. Select a row in the list, and then click Remove to delete the details.

For information about the details you enter on the General Ledger tab, click here.