Follow this guide, if you need to process pension payroll. This follows the HMRC guidance here.
Employee #
If the employee is currently on paiyroll®, you must set up a 2nd employment with another Employee record. This is because from HMRC’s perspective, the employee has 2 employments:
- Original Work employment and a
- Pension employment.
Do not make the 1st employment a leaver.
The easiest way to do this is to:
- Employees > Download
- Edit the csv file and delete all the columns after the bank account which start with a $
- Change the username
- Each employee record must have different and unique Usernames, even though the email can be the same e.g. john_smith@gmail.com and john.smith.pension@gmail.com
- Save the employee file as an Excel XLSX
- Employees > Upload and follow the wizard to add the employee
If the employee is not on paiyroll®, then you only need to add one employee as per case 2. This will typically be imported from an FPS.
Setup #
You will need a pay item which is configured as a standard gross payment item which does not contribute to National insurance. You can use a Salary template for a recurring amount or a Payment pay template for a varying amount.
- Company Setup > Pay Definitions
- Add…
- Set the Company
- Set the Pay Template Salary or Payment
- Enter a Name and Description
- Clear the Gross pay for NIC purposes buss
- Save by clicking Add
Pay item editor:
- Delete all pay items including Auto-enrolment (AE)
- Add the new Pension Payment item
- Click Update to see the payslips
Operation #
Process payroll as usual.