Your software doesn't log which tiers you assign to employees when you process each pay run. This means you can't run any existing reports to see which tier you applied in a prior period. We've created a report to help you check whether employees' recommended tier has changed due to the new thresholds. This report annualises your employees' pensionable pay in each pay period, and compares this to the salary bands on each tier. The report confirms the recommended tier based on the updated bands from the July 2025 changes and the original bands. The report also highlights whether these bands match or are different.  CAUTION: If you didn't originally process an employee on the recommended tier, the report doesn't highlight this.
Add the report to your software - Click the link below to download the report.
- Download the report
 NOTE: If a prompt asks you to select where to save the file, select your Downloads folder, then click Save. - In Sage 50 Payroll, click Help then About.
- Click the link beneath the Reports directory heading.
- Double-click the Userdef folder.
- Browse to your Downloads folder and right-click NHS_Tiers_July_2025.report and click Copy.
- Right-click within your Userdef folder and click Paste.
The report is now ready to run in your software. Run the report When you check employee tiers, check for any overpayments made by employees who have now left their employment. If any leavers have overpaid, you must still correct their contributions and pay any extra amount owed to them. - On your employee list, highlight the employees who have contributed to your NHS Pension scheme since 1 April 2025. This includes leavers.
NOTE: If your employee list doesn't show leavers, click Criteria and untick Leavers, then click OK. - Click Reports, then go to the User Defined (Local) folder on the left.
- Locate and run the NHS Tiers pre and post July 2025 report.
- In the Criteria Values window, set the date range as from 01/04/2025 to the most recent period you processed using the old bands.
- Select OK.
Next steps Your next steps depend on whether you processed any employees on what is now an incorrect tier. Select the relevant option below for your next steps. ▼ Incorrect tiers used If you find you processed any employees on the wrong tier, you need to correct this. Sage 50 Payroll can't automatically change pension contribution values for a prior period, or calculate these backdated amounts in a subsequent pay run. If any employees have overpaid pension contributions, either: - Reprocess the relevant pay periods for any affected employees using the correct tier based on the new bands
- Manually calculate the overpayment and apply this as an adjustment in the next period
Select your preferred option below for the steps you need to follow. ▼ Reprocess To correct pension contributions in each period by reprocessing: - Rollback the affected employees for any pay periods that include an overpayment.
 TIP: For help to rollback and make a correction, visit our correct a previous payroll run article. - Enter the new NHS Pension legislation values to your software.
- Select Payroll then Change Process Date.
- Set the process date to the earliest period you rolled back.
- Reprocess the period using the NHS Pension Tiers function to assess employees and assign the new bands.
- Update records to complete the period.
- If you're correcting more than one period, repeat steps three to six for each period until payments are back up to date.
When you reprocess the employee on their correct new tier, their pension contribution decreases and net pay increases. After reprocessing, issue new payslips for the periods you've amended to the relevant employees and pay the extra amount owed. If you prefer, you can pay the extra amount owed on your employees' next pay run. Process this amount in the next period using a post tax, post NI payment. Set up pre and post-tax and NI pay elements. ▼ Manual adjustment If you choose to make a manual adjustment, you don't need to do any reprocessing. Instead, you must: - Assess the correct tier for the employee for any periods processed on an incorrect tier. The report available in this article can help with this, or you can check this manually.
- Calculate the affected employees' contribution based on their new correct tier.
- Compare this to the contributions they've already paid to establish how much they overpaid.
Once you've calculated any employees' overpayment amounts, reduce their next contribution by this amount using the NHS Pensions module. To process the adjustment during their next pay run: - Enter payments for the employee as normal.
- Click NHS Pension Tiers, manually check the employee's pay against the new bands.
- Click the dropdown menu beside Tier to apply and assign the correct tier based on the new bands.
- Click Save, then click NHS Pension Contributions.
- Under the Adjust this period column, enter the amount of the correction for any affected employees.
NOTE: You can enter a negative amount to this field to reduce the employee's contribution this period. - Click Save.
- Complete the pay run as normal.
- When you process the next pay period, ensure the Adjust this period field is clear.
You've now processed the adjustment. Before you process any subsequent periods, enter the new NHS Pension legislation to your software.
|