Salary sacrifice pension contributions reduce the amount of salary that is subject to national insurance (NI). This means that the employee and employer pay less NI. Some employers can give all, or a portion of, their NI savings to the employee as an additional pension contribution.
To apportion employers' national insurance savings for pension contributions, watch the video or follow the steps below.
Set up employers' NI savings
Click the Pensions tab then select the relevant pension scheme.
Click the Settings tab then, within Groups, select Edit.
Set Is this a salary sacrifice pension group? to Yes.
Enter the percentage of the Employers National Insurance Savings that you need to add to the employee’s contribution.
View the employers' NI savings
You can now view the contributions alongside the normal employee and employer contributions. To view these:
Click Team then click the relevant team member.
Click the Pension tab then click Preview pay statement.