How to set up the Salary Sacrifice scheme
Once you set up the scheme you need to make sure the groups within the scheme are set up as Salary Sacrifice.
To set up the group as Salary Sacrifice, follow the steps below.
Click Company and click the relevant pension scheme
Under Settings tab, click Groups then Edit
Select option Yes to a question Is this a salary sacrifice pension group?
You will be given an option to add Add percentage of Employers NI Savings to employee contributions
If you wish to add the percentage of ER NI Savings, type in the number of percentages you wish to add. You can also use the arrows to add the amount
Click Save
Once the group is set as Salary Sacrifice, you need to decide how you wish to split the Employee and Employer contributions amount. The contributions should match the pension provider's settings at all times. If you choose to split the required percentage between an Employee and the Employer, for example, 5% EE and 4% ER or, if you choose to allocate the everything to the Employer, for example EE 0% and ER 9%, once you submit the pension to the provider, this will always show on the PAPDIS file as 9% total under the EmployerContributionsAmount.
On standard Pension Reports such as Standard Pension Report you will see a breakdown of the Employee contributions and Employer Contributions in separate columns. Other figures such as the Total Contributions and Employer's Contributions Saving will also be displayed in separate columns.
Employers Contribution NI Saving
If you want for the Employers Contributions NI Savings to be calculated, you will need to split the contributions between the Employee and the Employer. The system calculates the NI savings based on what the employee is contributing. If the employee's percentage is set as £0, no NI savings will be calculated.