Required Pension Scheme Information During Global Payroll Implementation in the UK for new PAYE customers

Article author
  • Updated

Pension registration is a requirement in the UK for most employers. The UK government has implemented automatic enrollment legislation, which means that employers must enroll eligible workers into a qualifying workplace pension scheme and contribute to their pension savings. Even though a pension is mandatory for employers to provide, employees can opt-out from making a pension contribution.

See also: Is a pension fund required in the UK?

In Global Payroll, customers are responsible for pension management, as it is not supported by Remote.

  • Name of pension provider
  • What is the auto-enrollment staging date?
    • The staging date for auto-enrollment refers to the deadline by which UK businesses are required to launch their auto-enrollment pension schemes.
  • What is the re-enrollment date?
    • The re-enrollment date will then be the effective start date of membership of a pension scheme. Please note that the employer's first re-enrollment date is based on the employer's original staging date, and not on when an individual member of staff was put into a pension scheme.
  • Scheme Type
    • There are two types of workplace pension schemes: 1. Defined benefit and 2. Defined contribution schemes. You can check with your pension provider to find out which type of workplace pension scheme.
  • Is basic rate tax relief to be recovered on the employee contribution?
    • Employees on basic rate tax get 20% tax relief, and a pension provider obtains the standard 20% tax relief from the government before allocating it to your pension.
    • Visit the government website to read more.
  • What is the default employee contribution?
  • What is the default employer contribution?
  • If you are using Nest Pensions, what is the Employer Reference (starts with EMP) and payment source?
    • The Nest pension is a master trust utilized by many employers. It is a defined contribution scheme where both you and your employer contribute to a collective fund. This fund is then invested to increase its value over time.
  • What is the AE (Automatic enrollment) scheme reference number?
  • What is the name of the feed description (format of output pension file)
  • Scheme Name (if applicable)
  • How should the contribution be treated for tax & NIC purposes?
  • Are new employees deferred? If so, how long is the deferral?
    • You can provide employees with an option to defer their pension contributions from the first month and start at a later date. Typically, this deferral period should not exceed three months. After the deferral period, the payroll software will automatically enroll the employee. Note: The deferral period is the default setting for the company however the employee can still opt to contribute from the first month.
  • Is Statutory Sick Pay (SSP) pensionable?
    • Employees can get £109.40 per week in Statutory Sick Pay (SSP) if they are too ill to work. It's paid by their employer for up to 28 weeks.
  • Are the following statutory payments pensionable?
  • Is holiday pensionable?
  • What pay elements are pensionable?
  • Do pension contributions start from £1 or from the LEL?
    • The Lower Earnings Limit (LEL) is an annually revised amount that represents the minimum level of earnings an employee needs to qualify for benefits, such as the state pension.
  • What % of NI savings do you contribute towards your pension? (if applicable)
  • Any other comments or instructions?
  • Please provide a calculation example for each applicable scheme

Was this article helpful?

0 out of 0 found this helpful

Have more questions? Submit a request



Article is closed for comments.