Before you startBefore you can submit pension contributions you need to:- Register with your pension provider
- Have access to your pension provider portal login
- Set up pension schemes in Sage Payroll
- Assess your employees, to see if they're enrolled, or have the option to opt in or join a pension scheme
- Process any request to opt in, opt out and join a pension scheme
- Complete the pay run you're submitting pension contributions for
If you're a new business, find out how to set up Auto Enrolment. visit The Pensions Regulator (TPR) website (opens in new tab). How to send pension contribution submissionsSage Payroll can submit pension contribution files to NEST and Smart pensions. The submission checks the payroll details match those on your pension provider portal. If they do not match exactly, the submission will fail. For other pension providers, you need to export a file from Sage Payroll. You can upload the file to the pension provider portal. You can also enter the contribution details onto your pension provider's portal. The steps to submit your data depend on your pension provider: Submitting Pension contributions to NEST in one of two ways. Online submissionUse this option to send the data from payroll to NEST. Select Summary then from the Auto Enrolment / Pensions area select View Submission Details.
A summary of the employees, categories, pensionable earnings and contributions will appear. Select Submit online. If this is your first time submitting, enter your Nest login details. When prompted, select Submit. When the submission is successful this message will appear: The NEST pension values were successfully submitted
If you receive an error message, fix the issue before re-trying the submission. Get details of how to fix submission errors. Read our article How to fix pension submission errors - Nest.  NOTE: New employees get put into a separate file for uploading to Nest. You will get a message at the point of submission confirming this. The starter file uploads first. This happens when you select the Submit option. Both files will upload.
Upload a submission file manuallyUse this option if you prefer to save and upload a file to the NEST portal website. Select Summary then from the Auto Enrolment / Pensions area select View Submission Details.
A summary of the employees, categories, pensionable earnings and contributions will appear. If this is the first time submitting pension contributions, enter your Sage login details. Select Manually upload CSV files.
While the file is generating you'll see prompts that tell you it has been generated, then downloaded.
The file saves into the downloads folder on your PC. Depending on your browser you may see a prompt to view the file at the top right corner of the screen. If you have more than one file, a compressed (zipped) folder appears. This contains the downloaded submission files. For example, NESTPensionsMth5.zip. To upload a member enrolment fileMember enrolment files contain any new employees'. They will enrol for the relevant pay reference period. Select Manage Pension File then Open NEST portal. Enter your NEST account username and password, then select Login. Select Manage your workers, then File upload. Select Choose File to search for the file on your computer, then Upload file.
Get information about uploading contribution files. Access the NEST website (opens in new tab). To upload a contribution file:Select Manage Contributions. In the Edit/Pay section, select the arrow alongside the contribution schedule you are uploading the file for. Select Upload file. Select Choose File to search for the file on your computer, then Upload file.
Get information about uploading contribution files. Access the NEST website (opens in new tab). If your Payroll is linked to an accountant: - Decide which Smart Pension details to use when submitting.
Select the Summary tab. From the Auto Enrolment / Pensions area select View Submission Details.
A summary of the employees, categories, pensionable earnings and contributions will appear. Select Submit Online.
If this is your first submission to Smart Pension, you’ll be asked to follow prompts that authorise submissions.
When a submission is in progress, the option to edit a completed pay run disables. This prevents inconsistencies between data held in Payroll and data submitted to Smart. At this point, you get directed to the Smart Pension website to complete the rest of the upload. You can use the pension contributions report to complete your provider's online template. It can also save as a PAPDIS file. You can upload this to some pension provider's web portals. PAPDIS ( Payroll And Pension Data Interface Standard) is an open standard report. It's used by payroll systems to transfer information to pension providers. Your pension provider can confirm if they support the upload of a PAPDIS file. The pension contributions report lists: Each employee enrolled in the pension scheme The employees' automatic enrolment status Pensionable pay values Qualifying earnings Employer and employee pension contributions
To download the pension contributions report as either a PDF or a PAPDIS file: Select the Pay Runs tab. Choose the relevant completed pay run. Select Pension submissions, then View pension contributions for this pay period. To generate a PDF report, select Download Report. To generate a PAPDIS file, select Export CSV.
Speak to your pension provider for: - Help completing their online template
- Uploading a PAPDIS file
How to confirm pension contributions are correctPension contributions calculate using the settings from your pension scheme. Also the payments used in your pay runs. Pension contribution not calculating as expected? Check the pension scheme and payments have been set up as required in Sage Payroll. We have provided some example calculations below: For each example the employee has gross pay of £2,000 per month and the Employee contribution rate of 5% Deduct before taxGross pay of £2,000 Pension contribution of 5% = £100
Tax calculated on remaining pay of £1,900
Tax not calculated on £100 pension contribution. The employee pays less tax. Deduct after taxGross pay of £2,000 Tax calculated on this amount of £2,000
Pension contribution of 5%. £100 – 20% tax = £80
HMRC pay additional 20% tax relief into your pension at request of your pension provider = £20
Total pension contribution of £80 + £20 = £100 Salary sacrificeGross pay of £2,000 Pension contribution of 5% = £100
Tax and NI calculated on remaining pay of £1,900
Tax and NI not calculated on £100 pension contribution. Employee pays less tax and NI For help with the payment types and settings, read our Create and manage payments article How to fix problems when submittingIf there is a problem with the submission, an error message displays. This is from the pension provider. It explains why the submission has failed. To find the full error message in Sage Payroll: Select Summary. Locate the Auto Enrolment / Pensions section. Locate the failed submission and select View Submission Details.
For a full list of the errors and how to fix them, read our How to fix pension submission errors article. Review contributions and record paymentsReview your pension contributions to view employee contributions for each month. This confirms how much you need to send to your pension provider. To review pension contributions:Select the Pensions tab. Select Review contributions & record payments. Choose the relevant Pension reference period and select View detailed contributions. To save a copy of the report, select Download Report.
To record the payment made to your pension provider:Select Return to Review Pension Payments. Check the amount to pay and enter your payment date Enter a reference or cheque number and select Record Payment.
If you subscribe to Sage Accounting, you can use Record Payment to post the payment to Accounting.
The payment reduces your company bank account and pensions liability. How to change submissionsYou may edit a completed pay run after you upload submission files. The steps you need to take depend on your pension provider.
For help editing a completed pay run, read our Correct a completed pay run article. NESTYou may edit a completed pay run after you upload the contribution files to NEST. You need to download a corrected pension file and upload it. The new file contains information for all employees with NEST pension values. This includes any corrections. To generate a new contribution submission after a completed pay run has been edited:In the Completed pay Run Summary, Select Pension submissions, then View Submission Details. Select Manage Pension File, then Regenerate CSV file.
Depending on your Internet browser, the file saves to your Downloads folder. You may get a prompt to save the file. In this case, make a note of the file name and browse to where you want to save it. For example, the Windows desktop. Then select Save. Select Manage Pension File and then Open NEST portal. Enter your NEST account username and password, then select Login. Once you upload the file and NEST accept you must confirm the file upload is successful in Sage Payroll. Select Manage Pension File and then Confirm CSV upload. When asked if the submission uploaded, select Yes.
Smart PensionYou can't re-submit pension contribution details to Smart Pension. This applies even if there has been a change to the contribution values. Don't worry, Smart Pension registers changes in your next pension contribution submission. You can edit a pay run after you've submitted the pension details to Smart Pension. Any change in values gets reported in the next Smart submission. Other pension providersYou can still edit a completed pay run after you upload the submission file. Contact your pension provider for advice. They may need a new PAPDIS file, or want changes made to their portal after editing a completed pay run: In the Completed Pay Run Summary, Select Export CSV. Select your pension provider name.
The new file saves to your downloads folder. Depending on your browser you may see a prompt to view the file at the top right corner of the screen. [BCB:299:UKI - Personal content block - Dane:ECB][BCB:304:UKI - Search override - Payroll UK:ECB] [BCB:276:UKI - hide back button:ECB] |