Add People's Pension scheme

If you’re new to Payroll, or you haven’t set up your People's Pension scheme yet, you must complete the following tasks:

Register with People's Pension
Check your Duties Start Date is correct in Payroll

▼Information you will need

To set up your pension, you need certain information from People's Pension.

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

To find this information, you should log in to your online account.

You'll need the following details:

Your unique ID. This is the unique ID given to you when you joined Peoples Pension
NOTE: A different unique ID is used for each pay frequency you want to process. For example, if you have weekly and monthly payroll, you need two unique ID's.
The Group Identifier for this pension plan
The type of contribution. Whether it's salary sacrifice, deducted before or after tax.
The type of deduction. This is a percentage or fixed amount
The employee and employer contribution percentages or amounts
Your earnings basis. Whether it's based on unbanded earnings, banded earnings or custom earnings

NOTE: Earnings basis does not apply for salary sacrifice pensions.

Your contributions payment date. When you pay your pension contributions to The People's Pension

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

▼How to set up The People's Pension scheme

Select Pensions, then Add a new pension.
Select People’s Pension.
In the Unique ID box, enter your unique ID provided by People's Pension.

Select Add Group and complete the relevant fields from the table.

Group Description	People's Pension group description
Group Identifier	The Worker group you've set up for this plan. People's Pension uses Worker groups. You have different contribution rates for your employees. Set up a plan for each worker group.
Type of contribution	Choose the type of contribution you have with Peoples Pension. 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 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
Type of deduction	Choose whether the rates are a percentage of the employees’ pay or a fixed amount. NOTE: This option is not available for Salary sacrifice contributions.
Employer Contribution	Enter the percent or fixed amount you pay into the pension scheme.
Employee Contribution	Enter the percent or fixed amount your employee pays into the pension scheme.

Select Next and complete the relevant fields from the table.

Earnings Basis	Only if you chose a percentage deduction, choose one of the following options: Pensionable Pay. The calculation uses only payments that have the Pension Earnings check box selected Qualifying Earnings. The calculation uses only payments that have the Qualifying Earnings check box selected You can enter your own thresholds for pension contributions. You can then enter an annual lower and upper earnings limit. When you process your pay run, Payroll adjusts the thresholds based on the pay frequency. It only deducts pension on earnings between the two bands These options are not available for Salary sacrifice contributions.
Annual lower earnings limit (£)	This option only appears if you chose Custom Earnings Basis. Enter the annual lower earnings limit for your pension.
Annual upper earnings limit (£)	This option only appears if you chose Custom Earnings Basis. Enter the annual upper earnings limit for your pension.
Contributions payment date	Select the date you pay the pension contributions to your pension provider.
Default plan (optional)	Enrolling 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.

Select Save. You can repeat the process to add more groups. For example, have a different group for Staff and Directors.
Select Scheme Frequency.
NOTE: You are only allowed one scheme per pay frequency. For example, if you have weekly and monthly paid employees, set up separate weekly and monthly schemes.
Select the Qualifying Scheme check box.
To read the terms, select the our terms link. To accept them, select the Terms check box.
Select Save.
To set up a scheme for a different pay frequency, begin again at step 1.

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.

▼Additional Voluntary Contributions

Your employees can pay more into their pension scheme if they wish. This is called an Additional Voluntary Contribution (AVC).

This can be on done on an Ad-Hoc or regular basis. They can contribute a percentage or a fixed amount.

You don't have to create a new scheme for these employees.

You add the AVC into the employees record at the Edit pay screen of the payment run.

From the payment run Edit pay screen:

Select the employee.
Select Manage enrolment.
Select Manage contributions.
Change Deduct Additional Voluntary Contributions from Off to On.
Select the frequency of the Voluntary Contribution.
From Additional Voluntary Contribution type, select either:
- % of pensionable earnings
- % of qualifying earnings
- Fixed amount
Enter a value for the deduction.
Select Save.

▼Next steps

If you can't find all your information for The People's Pension, you can contact them on 0300 330 1280.

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 a new pension, you need to add your scheme to your employees.

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

After your pay run, Submit Pension Data to People's Pension.

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