This guide outlines the steps to set up an Auto Enrolment (AE) pension.
Add a Pay Definition for the pension scheme using the Pension scheme Pay Template. You will normally require a single scheme, but you can add as many schemes as needed – for example, if directors receive higher contributions than employees.
First set the pension provider using the Clazz (class of scheme).
Then set all the scheme input values according to your scheme:
Add a Pay Definition using the AE Pay Template. Inputs should be set as follows:
No tax relief and Overseas national awaiting NI are normally unticked.
Qualifying Earnings source uses the default qualifying earnings buss.
Worker % provides a default value when adding an employee Pay Item. This can be changed on a per-employee basis.
Scheme must refer to the scheme created above
Add an AE Pay Item to each employee. You can either:
add Pay Items individually or
use the Pay Item Editor by updating an Employee and clicking Manage Pay Items…If the employee was previously auto-enrolled, opted-in or opted-out, then set these inputs appropriately:
Migrated status should only be set for imported employees and not new employees. Values are ‘Auto enrolled’, ‘Opted-out’, ‘Opted-in’ and ‘Deferred’. Similarly Migrated enrol date should be set if the employee was previously auto-enrolled.
Do not enter values for Opt-out date and Opt-in date but see below for how these may be used in the future.
Add a Report Definition for the pension provider. Some report definitions generate files which can be uploaded (e.g. CSV) while others use a web service (API).
paiyroll® is now ready and automatic enrolment will operate entirely automatically for each pay run.
If a notice is received from a pension provider for opt-in, opt-out or a contribution change, then set the appropriate inputs on the employee Pay Item Opt-out date Opt-in date Worker %, Some data feed reports will automatically set these inputs e.g. NEST.
If you receive a valid refund notice, then enter a reference in the Refund reference input. Refunds are automatically applied in the current pay-run.