You can set whether your pay elements are included or excluded from your pension scheme calculations. It's important that you set this up correctly so that pension contributions are accurate.

If you're unsure which payments should be pensionable, contact your pension provider for advice.

1. Go to Company then select Pay Elements.
2. Choose the required payment then select Edit.
3. If the payment counts towards qualifying earnings, select the Qualifying Earnings checkbox.
   TIP: The Pension Assessment then uses these earnings to assess the employee's worker status. Go to thepensionsregulator.gov.uk to read more.
4. If the payment should be pensionable, select the following checkboxes:
• Pension (Main)
• Pension (AVC) - This is an additional voluntary contribution made by the employee
• Salary Sacrifice (Pension Only) - select this to include the payment in calculations for a salary sacrifice pension scheme
5. Select OK.
6. Repeat these steps for each pay element.

Your software uses the new settings from the next period you process.

 NOTE: You can find further information on qualifying earnings, go thepensionsregulator.gov.uk and refer to paragraph 38.