Add a Smart Pension scheme
If you have a Smart Pension scheme for your employees, you can easily set this up in Sage Payroll.
You can also send your pension data directly from Sage Payroll to Smart Pension.
This article explains:
The Smart Pension information you need and where to find it.
How to set up your Smart Pension scheme in Sage Payroll.
What you need to do after you have set up your Smart Pension scheme.
Before you start
Before you can set up your pension scheme in Sage Payroll, you need certain bits of information from Smart Pension.
It is really important to get these, so the pension calculates correctly for your employees.
To find this information, you should sign in to your Smart online account (opens in a new tab).
You will need the following details:
- Your Company ID.
- The type of contribution. Whether it is salary sacrifice, deducted before tax or deducted after tax.
- The employee and employer contribution percentages.
- Your earnings basis. Whether it is based on unbanded earnings, banded earnings or custom earnings.
- Your contributions payment date. When you pay your pension contributions to Smart Pension.
After you've gathered all the information you need to accurately set up your Smart Pension scheme, you can add it to Sage Payroll.
How to set up your Smart Pension scheme
- Select Pensions, then Add a new pension.
- Select SMART Pension.
- Enter your Company ID.
Select Add Group, and complete the relevant fields from the table.
Group name Enter a name for this plan. Type of contribution
Choose the type of contribution you have with Smart Pension.
Salary sacrifice - The money paid into the pension is taken from your employee's gross pay before tax and National Insurance is calculated.
Note: If you choose Salary sacrifice, the employee contribution is shown as a negative payment on the payslip.
Contribution deducted before tax - The money paid into the pension is taken from your employee’s gross pay, before tax is calculated. Taxable gross pay is reduced by the amount of the pension contribution, therefore your employee does not pay tax on this contribution.
Contribution deducted after tax - The money paid into the pension is deducted after tax is calculated, and the pension provider claims back the Basic Rate tax paid on this contribution, direct from HMRC.
Employer Contribution Enter the percentage you pay into the pension scheme. Employee Contribution Enter the percentage your employee pays into the pension scheme.
- Select Next and complete the relevant fields from the table.
Earnings Basis Choose one of the following options:
Unbanded earnings – All payments that you’ve selected the Pension Earnings check box for are included in the pension calculation for that pay period.
Banded earnings – All earnings between a lower and upper limit set by the government are included in the pension calculation for that pay period.
Custom earnings basis – To specify your own thresholds for pension contributions, choose this option. You can then specify an annual lower and upper earnings limit. When you process your pay run, Payroll automatically adjusts the thresholds based on the pay frequency and only deducts pension on earnings between the two bands.
Note: These options are not available for Salary sacrifice contributions.
Annual lower earnings limit (£) This option only appears if you chose Custom earnings basis. Enter the annual lower earnings limit for your pension. Annual upper earnings limit (£) This option only appears if you chose Custom earnings basis. Enter the annual upper earnings limit for your pension. Contributions payment date Select the date you pay the pension contributions to your pension provider. Default plan (optional) To automatically enrol all employees into this pension scheme, select this check box. You can change this for individual employees when you process their pay run.
- Select Save. You can repeat the process to add more groups if required.
- Select the Qualifying Scheme check box.
- To read the terms, select the our terms link. Then to accept them, select the Terms check box.
- Select Save.
If you couldn't find all your Smart Pension information, you can contact them directly on 0333 666 2323.
If you already use Sage Payroll and have set up a new pension, you need to add your employees to the scheme
If you have set up pensions as part of an FPS import, you can now continue the FPS import process
- If you would like more information on how to submit your pension data, read our submit pension contributions article.