Relief at Source - based on Qualifying Earnings

A Relief at Source pension is deducted from the employee’s pay after Tax and NI is calculated, then the employee receives basic rate tax relief on that pension deduction.

In payroll, if say the employee’s pension deduction is 1%, you would enter 1% in the employee’s standard amount but the actual deduction will be 0.8% from their pay.

A Qualifying Earnings pension deduction is calculated as a percentage of the employee’s Qualifying Earnings between the lower limit and upper limit.

Add Employee Pension Deduction

Add Employer Pension Deduction

Enter Percentage for the Employee and Employer Pension Deduction

Configure Pension Deduction Pay Elements