This is the total value of an employee's payments used to calculate their pension contributions.

For example, if an employee's gross pay includes a £900 salary payment which is pensionable, and a £100 bonus payment which is set as non pensionable, the total gross pay is £1000 but the pensionable pay is £900.

TIP: To check if your pay elements are set to be included in your pension calculation, use our set up your pay elements for pension contributions >

To check the pensionable pay for any period including the current one you can use the following reports.

When you reconcile an employee's pension contributions you must use the contribution rates set in their employee record in your calculation. A separate rate is set for the employee and employer's contributions.

You can check these rates using the steps below:

1. On your employee list, double-click the relevant employee.
2. Click the Pensions tab, then click Manage Schemes.
3. Click on the pension scheme to check, then click Edit.
4. In this window, check the employee and employer contributions.
   TIP: If Fixed Amount is set for any contributions, your software uses this value as the pension contribution.

This sets whether pension contributions for employees on the scheme calculate before or after tax.

Let's see how this setting affects an individual whose employee contribution rate is 5%.

• If Deduct before tax is selected, the employee's full contribution rate deducts in the pension calculation, in this example that's 5%
• If Deduct before tax is not selected, basic rate tax of 20% is allowed for in the employee's pension contribution. This means that only 80% of the employee's contribution rate deducts in payroll. In this example, the employee contribution calculates at 4%
  TIP: The deduct before tax setting doesn't affect the employers contribution rate.

To check this setting on your pension scheme:

1. Click Company, then click Pension schemes.
2. Select the pension scheme in question, then click Edit.
3. Click OK on the message that appears.
4. Click the Employee tab, then check if the box beside Deduct before tax.

If this option isn't selected on your pension scheme, the total of your employees' pensionable pay is used in the pension calculation. When this option is selected, the following thresholds apply:

• All earnings below the annual lower threshold of £6,240 aren't included in the employee's pension contribution
• Also, all earnings above the annual upper threshold of £50,270 aren't included in the employee's pension calculation

Let's break down those annual thresholds into values for each pay frequency.

Next, let's run through how to check this setting on your pension scheme:

1. Click Company, then click Pension Schemes.
2. Click the pension scheme to check, then click Edit.
3. Click OK on the message that appears, the scheme then opens on the Details tab.
4. Check if the box beside Use Qualifying Earnings for pensionable pay. If this box is selected, the lower and upper thresholds are applied in the pension calculation.