Add a Smart Pension scheme

Before you start, you need certain information from Smart Pension.

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

To find this information, you should

Smart online account (opens in new tab).

You'll need the following details:

Your Company ID
The type of contribution. Whether it's salary sacrifice, deducted before or after tax.
The employee and employer contribution percentages
Your earnings basis. Whether it's based on unbanded earnings, banded earnings or custom earnings

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

Your contributions payment date. When you pay your pension contributions to Smart Pension

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

How to set up your Smart Pension scheme >

Select Pensions, then Add a new pension.
Select SMART Pension.
Enter your Company ID.

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

Group name	Enter a name for this plan.
Type of contribution	Choose the type of contribution you have with Smart 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 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
Employer Contribution	Enter the percentage you pay into the pension scheme. NOTE: Smart pensions do not support fixed-value contributions for employers.
Employee Contribution	Enter the percentage your employee pays into the pension scheme. NOTE: Smart pensions do not support fixed-value contributions for employees.

Select Next and complete the relevant fields from the table.

Earnings Basis	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 Custom Earnings Basis. 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 NOTE: 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)	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.

Select Save. You can repeat the process to add more groups if required.
Select the Qualifying Scheme check box.
To read the terms, select the our terms link. Then to accept them, select the Terms check box.
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.

Additional Voluntary Contributions (AVC) >

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 gross qualifying earnings
- % of pensionable earnings
- Fixed amount
Enter a value for the deduction.
Select Save.

Next steps >

If you couldn't find all your Smart Pension information, you can contact them on 0333 666 2323.

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.

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﻿Before you start >

How to set up your Smart Pension scheme >

Additional Voluntary Contributions (AVC) >

Next steps >

Before you start >