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Managing pension schemes

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There are many different types of pension schemes, each with specific rules on how they operate. To help you deal with these, Sage 50 Payroll offers a flexible system to automatically deduct pension contributions when your employees are paid. You can use the standard schemes, or create your own, to calculate both employee and employer pension contributions.

You can also fulfil your employer obligations by operating a pension scheme that meets the conditions specified by the Pensions Regulator. Find out more about your obligations.

Note: Before setting up your software, you need to know exactly what type of scheme your company operates. For more information, please contact a pensions advisor or visit The Pensions Advisory Service website.

To set up a pension schemes

1. Company > Settings > enter your employer's contracted out number (ECON) > OK.

   Note: This is issued by pension providers to employers who operate contracted out pension schemes.

2. Company > Pay Elements > choose the required payment > Edit.

   Note: You should choose a payment that is paid regularly to an employee, such as their normal salary. Do not use an additional payment, such as a bonus or commission, which may not always be paid.

3. Check that the Pension (Main) and Pension (AVC) check boxes are selected.
4. If this is a salary sacrifice pension scheme > select the Salary Sacrifice check box > OK > OK.
5. Company > Pension Schemes.

• To create a pension scheme > New.
• To change the details of an existing scheme > choose the scheme from the list > Edit > enter the Scheme and Administrator details in the boxes provided.

5. The following tabs are also available:

• Employee and Employer - enter the employee and employer contribution details, and specify how the total pension contribution calculates.
• Provider - record details of the organisation who administers your pension scheme. For example, contact details and scheme references.

6. To save your changes > OK > Close.
7. Employee > select the employee > Employee Record > Pensions > Manage Schemes.
8. To assign a scheme to an employee > Add > choose the appropriate scheme from the Scheme Reference drop-down list.

9. To change the details of an existing scheme > choose the scheme from the list > Edit.

   Tip: You can use the Global changes option to assign a pension scheme to a group of employees.

8. To save your changes > OK > Close > Save.

When you use the Enter Payments option to pay your employee, their pension contribution appears on the Summary tab. See Paying people.

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