Submit pension contributions
As an employer, when you offer pensions to your employees you must also submit information to your pension provider.
Each submission includes a list of your employees, the category of worker they are and how much they're contributing.
Sage Payroll can automatically calculate all of the information your pension provider will need.
Before you start
Before you can submit pension contributions you need to:
- Register with your pension provider.
- Have access to your pension provider portal login.
- Set up pension schemes in Sage Payroll.
- Asses your employees, to see if they are automatically enrolled, or they have the option to opt in or join a pension scheme.
- Process any request to opt in, opt out and join a pension scheme.
- Complete the pay run you are submitting pension contributions for.
If you are a new business, to find how to set up Auto Enrolment visit The Pensions Regulator (TPR) website (opens in a new window).
How to send pension contribution submissions
Sage Payroll can submit pension contribution files directly to NEST and Smart pensions.
The pension submission checks the details from Sage Payroll match those on your pension provider portal. If they do not match exactly, the submission will fail.
For other pension providers, you need to export a file from Sage Payroll. The file can be manually uploaded, or used to enter the contribution details onto your pension provider's portal.
The steps to submit your data depend on your pension provider:
Submitting Pension contributions to NEST can be done in one of two ways.
Online submission
Use this option to send the data directly from Sage Payroll to NEST.
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Select Summary then from the Auto Enrolment / Pensions area select View Submission Details.
A summary of the employees, categories, pensionable earnings and contributions will appear.
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Select Submit online.
If this is your first time submitting pension contributions, enter your Sage login details.
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When prompted, select Submit.
When the submission is successful this message will appear:
The NEST pension values were successfully submitted
If you receive an error message at this stage, fix the issue mentioned in the error before re-trying the submission.
For details of how to fix submission errors read our How to fix pension submission errors article.
Upload a submission file manually
Use this option if you prefer to save and upload a file to the NEST portal website.
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Select Summary then from the Auto Enrolment / Pensions area select View Submission Details.
A summary of the employees, categories, pensionable earnings and contributions will appear.
If this is the first time submitting pension contributions, enter your Sage login details.
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Select Manually upload CSV files.
While the file is generating you'll see prompts that tell you it has been generated, then downloaded.
The file will be saved into the downloads folder on your PC.
Depending on browser you may see a prompt to view the file at the top right corner of the screen.
If you have multiple files, a compressed (zipped) folder is created which contains the downloaded submission files.
For example, NESTPensionsMth5.zip.
To upload a member enrolment file.
Member enrolment files contain any new employees' who will be enrolled for the relevant pay reference period.
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Select Manage Pension File then Open NEST portal.
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Enter your NEST account username and password, then select Login.
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Select Manage your workers, then file upload.
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Select Choose File to search for the file on your computer, then Upload file.
For information about uploading contribution files, access the NEST website (opens in a new window)
To upload a contribution file:
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Select Manage Contributions.
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In the Edit/Pay section, select the arrow alongside the contribution schedule you are uploading the file for.
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Select Upload file.
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Select Choose File to search for the file on your computer, then Upload file.
For information about uploading contribution files, access the NEST website (opens in a new window).
If your Payroll is linked to an accountant, you will need to decide which Smart Pensions details to use when submitting.
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Select Summary then from the Auto Enrolment/ Pensions area select View Submission Details.
A summary of the employees, categories, pensionable earnings and contributions will appear.
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Select Submit Online.
If this is your first submission to Smart Pensions, you’ll be asked to follow prompts that authorise submissions.
When a submission is in progress, the option to edit a completed pay run is disabled. This prevents inconsistencies between the data held in Sage Payroll and the data being sent to Smart Pensions.
At this point, you will be directed onto the Smart Pensions website to complete the rest of the upload.
The pension contributions report can be used to manually complete your pension provider's online template, or can be saved as a PAPDIS file that can be uploaded to some pension providers.
PAPDIS ( Payroll And Pension Data Interface Standard) is an open standard report, used by payroll systems to transfer information to pension providers.
Your pension provider can confirm if they support the upload of a PAPDIS file.
The pension contributions report lists:
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Each employee enrolled in the pension scheme.
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The employees' automatic enrolment status.
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Pensionable pay values.
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Qualifying earnings.
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Employer and employee pension contributions.
To download the pension contributions report as either a PDF or a PAPDIS file:
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Select Pay Runs, then choose the relevant completed pay run.
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Select Pension submissions, then View pension contributions for this pay period.
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To generate a PDF report, select Download Report.
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To generate a PAPDIS file, select Export CSV.
Speak to your pension provider for help completing their online template, or uploading a PAPDIS file.
Pension contributions are calculated using the settings from your pension scheme, and the payments used in your pay runs.
If a pension contribution is not calculating as you expect, check the pension scheme and payments have been set up correctly in Sage Payroll.
To help you understand how different pension deductions are calculated, we have provided some example calculations below:
For each example the employee has gross pay of £2,000 per month and the Employee contribution rate of 5%
Deduct before tax
Gross pay of £2,000
Pension contribution of 5% = £100
Tax calculated on remaining pay of £1,900
Tax not calculated on £100 pension contribution. Employee pays less tax.
Deduct after tax
Gross pay of £2,000
Tax calculated on this amount of £2,000
Pension contribution of 5%. £100 – 20% tax = £80
HMRC pay additional 20% tax relief into your pension at request of your pension provider = £20.
Total pension contribution of £80 + £20 = £100.
Salary sacrifice
Gross pay of £2,000
Pension contribution of 5% = £100
Tax and NI calculated on remaining pay of £1,900.
Tax and NI not calculated on £100 pension contribution. Employee pays less tax and NI.
For help with the payment types and settings, read our Create and manage payments article.
How to fix problems when submitting
If there is a problem when submitting your pension data, an error message will explain why the submission has failed.
To find the full error message in Sage Payroll:
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Select Summary.
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Locate the Auto Enrolment / Pensions section.
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Locate the failed submission and select View Submission Details.
For a full list of the errors and how to fix them, read our How to fix pension submission errors article.
Review contributions and record payments
Review your pension contributions to view employee contributions for each month and see how much you need to send to your pension provider.
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Select Pensions, then Review contributions & record payments.
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Choose the relevant Pension reference period and select View detailed contributions.
To save a copy of the report, select Download Report.
To record the payment has been made to your pension provider:
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Select Return to Review Pension Payments.
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Check the amount to pay and enter your payment date
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Enter a reference or cheque number and select Record Payment.
If you subscribe to Sage Accounting, you can use Record Payment to post the payment to Accounting.
The payment reduces your company bank account and pensions liability.
If you edit a completed pay run after you upload submission files, the steps you need to take depend on your pension provider.
For help editing a completed pay run, read our Correct a completed pay run article.
NEST
If you edit a completed pay run after you upload and confirm the contribution submission files to NEST, download a corrected pension file and upload it.
The new file contains information for all employees with NEST pension values including any corrections.
To generate a new contribution submission after a completed pay run has been edited:
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In the Completed Pay Run summary, Select Pension submissions, then View Submission Details.
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Select Manage Pension File, then Regenerate CSV file.
Depending on your Internet browser, the file either automatically downloads to your Downloads folder, or you’re prompted to save the file.
If you’re prompted to save the file, make a note of the file name and browse to where you want to save it, for example, the Windows desktop. Then select Save.
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Select Manage Pension File and then Open NEST portal.
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Enter your NEST account username and password, then select Login.
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Once you upload the file and NEST accept you must confirm the file upload is successful in Sage Payroll.
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Select Manage Pension File and then Confirm CSV upload.
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When asked if the submission uploaded successfully, select Yes.
Smart pensions
You cannot re-submit pension contribution details to Smart Pensions, even if there has been a change to the contribution values.
Don't worry, Smart pensions will see the changes when you send your next pension contribution submission.
If you have made a change to a pay run after you've submitted the pension contribution details to Smart Pensions, the differences between the original pension values and the corrected pension values are included in the next regular Smart Pension submission.
Other pension providers
If you edit a completed pay run after you upload submission file, contact your pension provider for advice.
If they need a new PAPDIS file, or for changes to be manually made to their portal after a completed pay run has been edited:
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In the Completed Pay Run summary, Select Export CSV
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Select your pension provider name.
The new file will be saved your downloads folder. Depending on browser you may see a prompt to view the file at the top right corner of the screen.
