How do I specify Qualifying and Pensionable Earnings?
You must specify which of your Payments comprise Qualifying Earnings and Pensionable Earnings.
You must get this right as the Automatic Enrolment process relies on Qualifying Earnings to function.
What are Pensionable Earnings?
Pensionable Earnings are those included in your pension calculation and are dependent on your pension scheme. Your Pension Provider defines these.
What are Qualifying Earnings?
Qualifying Earnings are the earnings used to assess whether a worker earns enough to be automatically enrolled. The Pensions Regulator defines these earnings.
To ensure your existing pay elements include in your Qualifying Earnings and/or Pensionable Earnings, follow these steps:
-
Select the Pension menu and then Configure Earnings.
The screen has three tabs, Salary, Rates and Pay/Deds.
-
The Salary tab already has all its elements selected for Qualifying Earnings. However, your Pension scheme may count different items as Pensionable Earnings. You can select these in the right-hand column, if required.
-
The Rates tab displays all rates you currently have set up at company level. Select any that are part of Qualifying Earnings and Pensionable Earnings.
-
The Pay/Deds tab displays all payments you currently have set up at company level. Select any that are part of Qualifying Earnings and Pensionable Earnings.
-
Select OK when finished.