NEST submissions failing due to NEST error 'Pay periods must align to tax periods'.

Summary

How to correct NEST submissions failing due to NEST group not aligning to Payroll tax periods in Sage Payroll.

Description

On your first submission of a new pension file, you may receive the error "Pay periods must align to tax periods".

Resolution

If you are getting this error, you must create a new group in NEST. You can’t edit an existing group’s frequency. If you receive this error, this article explains how to correct this in NEST and Payroll.

The solution to the error is different depending on your employee pay frequency.

2 weekly or 4 weekly pay frequencies

If you pay 2-weekly or 4-weekly, you need to select custom dates in NEST and align these dates to the Pay Reference Period.

If you have difficulty with this, please contact Nest and ask them to set this up for you.

Find your Pay Reference Period:

Select the Summary Tab.
Under Auto Enrolment / Pensions select View Submission Errors.
Make a note of the weekly or monthly Pay Reference Period dates.
NOTE: Your dates will be different to the dates in the screenshots
Call Nest on 0300 020 0393 and ask them to align the dates to your pension Group.
Give the changes 24 hours to update in Nest systems and try the submission again.

Weekly or Monthly pay frequencies

Corrections in NEST >

You can’t change an existing group’s frequency. You must create a new group and transfer your employees from the old group.

Step 1: Check the group in NEST

Your NEST group must be set up to align with the tax periods to integrate with Payroll. When you’re setting up your NEST group, select a frequency of Tax Monthly instead of Calendar Monthly. Select Tax weekly instead of Calendar Weekly.

Follow the Nest article Adding a new group (opens in new tab).

TIP: It could take 24 hours for the information to update on the NEST systems.

Step 2: Move your workers to the new NEST group

CAUTION: If you haven’t entered your workers in NEST yet, disregard this section. Payroll will create a new enrolment file for you.

If you’ve already set your workers in NEST, you must move the workers into the newly created group.

After you’ve moved your workers, it can take up to 24 hours for Nest to create the new payment schedules. Wait for these to appear in NEST before you try your NEST submission again.

Check this from the NEST homepage. Select Manage contributions. The pay periods should be Tax Monthly or Tax Weekly.

Corrections in Payroll >

Once you’ve set up your new group in NEST, you’ll be able to amend your pension in Payroll. Match any changes you make in NEST.

You may need to rename the Pension Group, for example.

CAUTION: Your pension changes may affect the amount of the contributions already taken. You may need to post a correction. Read our article Correcting mistakes (opens in new tab).

Once the new payment schedule has updated in NEST, try your submission from Payroll again. Please be aware the update can take up to 24 hours.

NOTE: Followed the above steps and still get the error? Please contact Nest to check over your settings.