Creating a Pension Scheme
1.1 Accessing the pension scheme options
Within Sage 50c Payroll, click Tasks on the top toolbar. From here, select Company and then select Pension Schemes.
The Pension Schemes window appears and shows the ten default payroll pension schemes. Either click New to create a new scheme or highlight one of the ten default schemes and click Edit.
Enrolment Review Date and Payroll Id can be entered here but are entirely optional.
After clicking on Edit, the scheme settings window will appear and contains four tabs to customise the pension scheme setup.
In the Details tab, set a custom description if desired. Set the type of scheme as per the pension scheme arrangement with the pension provider. If the scheme type is Contracted Out, enter the relevant scheme contracted out number (SCON). You will be prompted to enter the employer's contracting out number (ECON) when you save the pension scheme settings. Here you can flag if the scheme is an automatic enrolment qualifying pension scheme and if the pension contribution should be calculated on the earnings between the qualifying bands. You can also use this screen to set whether the pension scheme is salary sacrifice or not.
Depending on the type of scheme selected, you may also see an optional flag to indicate the pension scheme is Stakeholder Friendly.
In the Employee tab, set the specifics of the agreed employee contribution. Contributions can be set to deduct either a percentage of earnings or a fixed amount. Dependent on the type of scheme selected in the Details tab, some of the setting's tick boxes will be pre-set and not available to edit.
Be sure to appropriately set whether the pension scheme is deducted before tax (pension contribution is deducted from gross pay and reduces taxable gross pay) or deducted after tax (pension contribution is deducted from net pay and contribution is automatically reduced by 20% for tax relief).
In the Employer tab, set the specifics of the agreed employee contribution. Contributions can be set to deduct either a percentage of earnings or a fixed amount. Dependent on the type of scheme selected in the Details tab, some of the setting's tick boxes will be pre-set and not available to edit.
In the Provider tab, set any relevant contact information for the pension provider. Ensure the Providers Ref. box is completed with any applicable reference for the pension scheme/pension account. The Provider Payment Details bank account information can be completed but the fields are for reference only.