Pension not calculating

If a pension is not calculating when running a pay run this might be because:

  • The pension scheme isn’t set up correctly.
  • The pay run date is before the staging date set on the pension.
  • The payment type used is not set up to include Pension Earnings and Qualifying Earnings.
  • The employee hasn’t been enrolled and opted in to the pension.

Check your pension scheme is set up correctly

From the Pensions tab make sure the check boxes for all four sections of the Auto Enrolment Preparation have been ticked. This confirms you have nominated a pensions contact, assessed your workforce, your pension scheme qualifies and employees have been informed. Make sure you enter a Staging Dateand a Duties Startdate.

Auto Enrolment Preperation Screen

Check the pay run is after the staging date

The pension will not calculate on pay periods prior to the Staging Date and will not be displayed until after this date.

Check that payment type includes pension earnings

Check that the relevant payment types used to pay your employee are set up to include pension earnings and qualifying earnings.

  1. From the Settings tab and Payment & Deduction Settings, select the payment type (Salary or Ex. Basic Hours).

  2. On the View Payment screen, the Pension Earnings and Qualifying Earnings checkboxes must be selected.

    View Payment Screen

  3. Once a payment type has been included in a completed pay run, these check boxes cannot be edited. If the payment type should have included a pension, create a new payment type and make sure these checkboxes are selected.

    Once the new payment type is set up, process your pay run and enter the new payment to allow the pension to calculate. Pension contributions are now calculated for your employees. Don't forget to remove the original payment.

Add Payment Screen

Check your employee has joined or opted into the scheme

Employees only become eligible to join your pension scheme if they are over 21 and have not yet reached retirement age.

Eligible employees must also have reached the earnings thresholds for automatic enrolment. These amounts are confirmed by the Department for Work and Pensions (DWP) and come into effect at the start of the new tax year in April.

View automatic enrolment thresholds

If your employee is eligible, check that they have been added to a pension scheme

  1. From the Employees tab, select the employee and then Workplace Pensions.

    Employee Details - Workplace Pensions screen

  2. Make sure the Excluded from Auto-enrolment checkbox is not selected.
  3. If you make this change to the employee record, re-enter the employee's pay in the pay run. Enter the pay amount as zero, then enter the correct amount. This will make sure the change to auto-enrolment status is picked up.