Follow this guide to make one-off adjustments to pension contributions, use fixed values instead of the usual Worker % values or override the scheme Company %.
Worker % #
There are 4 different inputs on the auto-enrolment pay item. The Worker % is always set on the worker’s Pay Item. Most users will set the Worker % to the required value and leave the other inputs at zero.
Adjustments #
Pay Item Editor > Search or Select the employee.
There are 2 inputs on the AE (Auto Enrol) pay item: Workers adj and Company adj. Add Worker adjustment and/or Company adjustment values and click Update to check the operation on the pop-up payslip:
Note:
- The percentage basis contributions and deductions are calculated first, and then the fixed adjustment values are added.
- If you need the percentage values to be zero, set the scheme to banded – this is because unbranded schemes have minimum percentages. Create a different scheme if required.
- The company adj value is entered as a positive to make the usual company contributions. Use a negative value to reduce contributions.
- Because Worker adj is a deduction from the employee’s pay, it is entered as a negative value. If you need to provide a refund amount then enter a positive value.
- Enter the Worker adj value as a Gross value before any tax relief for Relief at Source (RAS) schemes.
- If the scheme has 20% tax relief, a 500 Gross Worker adjustment will mean an actual net worker deduction of 400.
- As Tax relief does not apply to Salary Sacrifice (SS) and Net Pay Arrangement (NPA) schemes, enter the actual Worker adj value.
- Both pay item adjustment inputs will auto-clear after the pay run is approved, so you do not need to remember to set them to zero.
- Select No tax relief if applicable to the worker.
Fixed Values #
You can also use fixed pension values using the above approach. However, to ensure these are not auto-cleared after each payroll approval, you will need to change the way the auto-enrolment pay definition is configured.
Company Setup > Pay Definitions > Update the AE Pay Definition:
Change the Worker adj and Company adj to Use indefinitely. This will leave the values unchanged after a pay run approval:
Click Update
Company % [Scheme Override] #
The Company % is usually set on the Pension scheme (being a fixed % value across all workers). However, you can override the company scheme percentage using the Pay Item Company % Scheme Override. This is useful where a worker’s individual company percentage differs from the usual scheme company %:
