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Earnings basis and pensionable pay

Question asked by Erika Nagae 1 year ago

We are new to payroll with Clearbooks. The amount of pension Clearbooks says to take out is higher than the amount our Pension scheme asks for. This seems to because the Pension scheme gets figures after deducting the allowance of £503 from the Gross pay. Does anyone know how to adjust this on Clearbooks so that it will take into account the allowance of £503 being deducted from gross pay before the pension amounts are calculated? Thanks in advance. Erika

3 Replies

Hi Erika,

Just some more information for you...

When setting up a pension scheme in Payroll (Pensions> Pension scheme> Add pension scheme) you can apply contributions to banded qualifying earnings only, which is also what I think you are also looking for.

Setting up a pension scheme

If you ever need to change this on a pension scheme that you have set up, you will have to delete it and set up a new scheme.

On Clearbooks it reads that:

Editing pension schemes The scheme qualification, tax relief and earning basis on this pension scheme can not be changed because they may have been used for assessment and contributions calculations.

Surely this must be able to be adjusted as people have a choice as to how much they wish to put into their pensions???

Hi Erika,

You are free to adjust the amount of the employee's and the employer's contributions by going into Payroll and Employees> View> [Employee]> Pension details.

file

Hi Erika,

Just some more information for you...

When setting up a pension scheme in Payroll (Pensions> Pension scheme> Add pension scheme) you can apply contributions to banded qualifying earnings only, which is also what I think you are also looking for.

Setting up a pension scheme

If you ever need to change this on a pension scheme that you have set up, you will have to delete it and set up a new scheme.

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