Automatic enrolment exclusions

How to set auto enrolment exclusions using the Pensions Module in Sage 50 Payroll.

In Sage 50 Payroll, you can set exclusions so your software doesn't assess certain employees for automatic enrolment or cyclical re-enrolment.

An example of an exclusion reason is that the employee is working their notice period.

If the employee's circumstances change, update the employee's exclusion reason to No Exclusion. This ensures your software can include them in the pension assessment.

Automatic enrolment exclusions

You can view and set your employee exclusions for the pension assessment that you run each pay period:

1. Select the employees you want to edit on your employee list.
2. Go to Employee, then select Auto Enrolment Exclusions.
3. Use the dropdown under the Exclusion Reason heading and set the relevant reason for the employees.
   
   TIP:

   Use the table below to find out about the exclusion reasons available in your software.

4. When you're finished, select Save.

Cyclical re-enrolment exclusions

Your software also allows you to set exclusions reasons specifically for cyclical re-enrolment.

If you're approaching your six-month re-enrolment window for cyclical re-enrolment and need to apply exclusions, follow the steps below:

1. Go to Company then Pensions Module Settings.
2. Go to Manage Cyclical Re-enrolment settings,
3. Select Manage Employee Exclusions.
4. Use the Exclusion Reason dropdown to set the reason for the relevant employees.
   
   TIP:

   Use the table below to find out about the exclusion reasons available in your software.

5. Select Save, then Save again.
6. Select Save to close Pension Module Settings and save your changes to exclusions.

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Exclusion reasons

To find out more about each exclusion reason in your software, check the table below.

Exclusion reason	When to use
No exclusion	An employee who is eligible for assessment.
Director without employment contract	An employee who holds the office of a director of the employer. The employee is an appointed director for the company or organisation but doesn’t have a contract or receive regular payment.
Non-salaried limited liability partner	A limited liability (LLP) partner who HMRC don't treat as a salaried member.
Maximum annual contribution reached	An employee who has built up pension savings above the Lifetime Allowance for HMRC purposes. The employee has protection from tax charges on these savings under HMRC’s primary, enhanced, fixed or, individual protection requirements.
Received winding-up lump sum	An employee who has received a winding-up lump sum payment while in your employment. Also, during the 12-month period starting on the payment date, the employee ceased employment after the receiving the payment. Then, you later re-employed the employee.
Working notice period	An employee who has given notice or been given notice of the end of their employment.

 

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