Automatic enrolment configuration tool
Step 6: Pension provider details
Incorrect information can have serious consequences
You may receive a fine from The Pension Regulator, Tax may be calculated incorrectly or HMRC may preform an audit. It is important you enter the information accurately, if you are not sure...
STOP & ASK. Talk to your pension provider
Your pension provider should supply you with the details you need to complete this screen. You are also able to select an existing pension scheme.
Completing this screen will create your pension deductions for you. Alternatively, if you set up your deductions via Company > Alter Payment/Deductions, IRIS has several guides for you. (ERROR 404) depending on your pension provider.
Calculation Basis
Qualifying (banded) Earnings
Qualifying (banded) Earnings are the earnings you can use to calculate contributions for an auto enrolment pension.
If you select Qualifying (banded) Earnings to work out contributions, the payroll software will contribute a percentage of a worker’s gross annual earnings that fall between the lower and upper level of qualifying earnings.
Earnings below the lower level of qualifying earnings are not included in the calculation.
These are annual figures. Because you pay contributions every time you pay your workers, the payroll software will calculate contributions based on qualifying earnings for each pay period in turn.
A worker’s qualifying earnings for a pay period will include the following:
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overtime
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bonuses
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commission
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statutory sick pay
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statutory pay someone receives during paternity, maternity or any other kind of family leave.
Pensionable Earnings
Your pension provider will tell you what constitutes a Pensionable Earning.