If total contributions for any of your employees is below 8%, the phasing wizard flags this as below the regulatory minimum. With a tier 3 scheme, you must run the phasing wizard with rates set to the 8% minimum first. Once you've done this, the phasing wizard won't reappear, and you can amend the rates back to the tier 3 amounts.
NOTE: The phasing wizard is mandatory. You can't process the first period of the tax year until you've completed the phasing wizard. Update to Tier 3 certification Follow Steps 6 to 17 If you've already completed the Phasing Wizard this tax year. For example, your scheme is changing to tier 3 mid tax year. If you haven't completed the wizard yet, begin from Step 1 below. - Select Payroll then Change Process Date.
- Set your process date to your first pay date in the 2025/2026 tax year.
- Select a single employee on your employee list.
- Select Enter Payments.
- The Phasing Wizard opens, complete this and uplift to the 8% minimum.
TIP: For help with completing the phasing wizard, visit our automatic enrolment phasing - update the percentages using the pensions module article. - Select Close in Enter Payments.
- Select Change Process Date.
- Set your process date to 05/04/2019.
- Go to Company then Pension Schemes.
- Select the pension scheme you want to be on the type 3 certification and select Edit.
- Select the Employee and Employer tabs and enter the contributions you need to use.
- Check your settings for Deduct Before Tax and Use Qualifying Earnings for pensionable pay are correct.
- Press OK and Close.
- Open the employee record for an individual on this pension scheme.
- Click the Pensions tab, then click Manage Schemes.
- Select this scheme and click Edit.
- Check that the contribution rates are correct. You can edit contributions here for each employee if required.
The pension schemes are now on the 7% minimum. When you process the next pay period, run the Pension Assessment and check that their contributions are correct. NOTE: Follow our separate article if you see the error - 'Failed to update pension schemes in the pensions module during this process. [BCB:19:UK - Sales message :ECB] |