You can set up your NOW pension scheme in Sage Payroll. This will calculate your employee and employer contributions each period.
Once you create your pension scheme, you can edit but not delete it.
You need certain information from NOW: Pensions.
Correct information is crucial to ensure accurate pension calculations for your employees.
To find this information, log into nowpensions.com.
You'll need the following details:
Plan type doesn't apply for salary sacrifice pensions.
Once you've gathered all the information, you can add your pension scheme to your payroll.
Select Pensions, then Add a new pension.
Select Add Plan and complete the relevant fields from the table.
| Plan name | Enter a name for this plan. |
| Pay code | Enter your pay code. |
| Type of contribution | Choose the type of contribution you have with NOW: Pensions.
▼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 doesn’t 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. |
| Plan Type | Choose the type of plan you have with NOW: Pensions.
▼101 - Auto enrolment standard Classed as Qualifying Earnings for auto enrolment. Contribution levels from 6 April 2019 are 3% Employer and 5% Employee. ▼102 - Auto enrolment standard Same as 101 but classed as Pensionable Pay. Contribution levels from 6 April 2019 are 4% Employer and 5% Employee. ▼103 - Stepped saving Classed as Pensionable Pay. A phased introduction to more generous employer contributions. Contribution levels from 6 April 2019 are 6% Employer and 3% Employee. ▼104 - Saving plus Classed as Pensionable Pay. Total Contributions of 10% or more. ▼105 - Matched saving Classed as Pensionable Pay. Employers match Member contributions, based on their basic earnings. These contributions fall within specific lower and upper limits. NOTE:Plan type won't show if you selected Salary sacrifice in Step 1 |
| 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. |
Payroll will correctly calculate pre-tax and post-tax deductions. You don't need to adjust the percentage amounts to allow for a pre or post tax calculation.
Your employees can pay more into their pension scheme if they wish. This is an Additional Voluntary Contribution (AVC).
This calculates on an Ad Hoc or regular basis. They can contribute a percentage or a fixed amount.
If you can't find all your NOW: Pensions information, you can contact them on 0330 100 3399.
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 your new pension, you need to add your scheme to the employees.
If you have set up pensions as part of an FPS import, you can now continue the FPS import process.
You can run a pension contributions report in Sage Payroll. use this to enter your pension data on the NOW: Pensions online template, or save it as a file and upload it.