Solution Properties
Solution ID:
222001000101452
Last Modified Date:
Fri Dec 15 11:44:00 UTC 2023
Taxonomy Path:
Case category//How do I...//governmental/legislative compliance
Author:
[email protected]
Add a NOW: Pensions scheme
Description

If you have a NOW: Pensions scheme for your employees, you can set this up in Sage Payroll.

 NOTE: Once your pension scheme is created, you can edit but not delete it.  

Cause
Resolution

Before you start, you need certain information from NOW: Pensions.

Correct information is crucial, to ensure accurate pension calculations for your employees.

To find this information, you should log in to your online account (opens in a new tab).

You'll need the following details:

  • Your employer code
  • Your pay code for this payroll. This is a four-digit code provided by NOW: Pensions. It identifies one payroll from another
  • The type of contribution. Whether it's salary sacrifice, deducted before tax or deducted after tax
  • Your plan type. Whether it's auto-enrolment standard 101 or 102. Stepped saving, saving plus, or matched saving

 NOTE: Plan type does not apply for salary sacrifice pensions. 

  • Your contributions payment date. When you pay your pension contributions to NOW: Pensions

Once you've gathered all the information you can add your pension scheme to payroll.

How to set up your NOW: Pensions scheme

  1. Select Pensions, then Add a new pension.
  2. Select NOW: Pensions.
  3. In the Employer reference box, enter your Employer Code provided by NOW: Pension

  4. Select Add Plan and complete the relevant fields from the table.

    Plan name Enter a name for this plan.
    Pay code Enter your pay code.
    Type of contribution

    Choose the type of contribution you have with NOW: Pensions.

     

    • Salary sacrifice - Money paid into the pension deducts from your employee's gross pay. This deducts before calculating tax and National Insurance
       NOTE: With Salary sacrifice, enter the percentage contribution for the employer and employee. The employee contribution shows as a negative payment on the payslip.

    • Contribution deducted before tax. Money paid into the pension deducts from your employee's gross pay. This deducts before calculating tax. Taxable gross pay reduces by the amount of the pension contribution. This means the employee does not pay tax on this contribution

    • Contribution deducted after tax. The money paid into the pension deducts after tax calculates. The pension provider claims back the tax paid on this contribution, direct from HMRC
  5. Select Add Plan and complete the relevant fields from the table.
    Plan Type

    Choose the type of plan you have with NOW: Pensions.

     

    • 101 - Auto enrolment standard - Classed as Qualifying Earnings for auto enrolment. Contribution levels from 6 April 2019 are 3% Employer and 5% Employee

    • 102 - Auto enrolment standard - Same as 101 but classed as Pensionable Pay. Contribution levels from 6 April 2019 are 4% Employer and 5% Employee

    • 103 - Stepped saving - Classed as Pensionable Pay. A phased introduction to more generous employer contributions. Contribution levels from 6 April 2019 are 6% Employer and 3% Employee

    • 104 - Saving plus - Classed as Pensionable Pay. Total Contributions of 10% or more

    • 105 - Matched saving - Classed as Pensionable Pay. Employers match Member contributions, based on their basic earnings. These contributions fall within specific lower and upper limits

     


     NOTE: Plan type will not show if you selected Salary sacrifice in Step 1
    Contributions payment date Select the date you pay the pension contributions to your pension provider.
    Default plan (optional) Enroling employees into this pension scheme is automatic if you select this box. You can change this for individual employees when you process their pay run.
  6. Select Next and complete the relevant fields from the table.
  7. Select Save. You can repeat the process to add more plans if required.
  8. Select the Qualifying Scheme check box.
  9. To read the terms, select the our terms link. To accept them, select the Terms check box.
  10. Select Save.

 NOTE: Payroll will correctly calculate pre-tax and post-tax deductions. You do not need to adjust the percentage amounts to allow for a pre or post tax calculation. 

Next steps

If you can't find all your NOW: Pensions information, you can contact them on 0330 100 3399.

You need to make your employee payments subject to pension calculations. Read our article Create and manage payments. 

If you already use Sage Payroll and have set up your new pension, you need to add your scheme to the employees.

If you have set up pensions as part of an FPS import, you can now continue the FPS import process.

You can run a pension contributions report in Sage Payroll. use this to enter your pension data on the NOW: Pensions online template, or save it as a file and upload it.

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