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Incorrect pension contribution

What to check if an employee's pension contribution looks incorrect.

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Written by Jordan Hutchinson
Updated over 4 months ago

If an employee's pension contribution seems incorrect, there are a few things you can check to ensure the calculation is accurate.

Check the multiple list

To ensure only the relevant pay elements are selected as pensionable, in case too many or too few pay elements are included. To check this, follow the steps below.

  1. Click System, and then click Pay Elements.

  2. Find and select the required pay element.

  3. Click Edit , and then click Ok.

  4. Click the Multiple tab, and ensure the correct pay elements are selected.

  5. Click Save.

Qualifying earnings settings

The pension pay element may be using the lower and upper earnings thresholds, meaning the pensionable income is lower than the employee's gross earnings, which reduces the pension contribution. To check this, follow the steps below.

  1. Click System, and then click Pay Elements.

  2. Find and select the required pay element.

  3. Click Edit , and then click Ok.

  4. Click the Multiple tab.

From here, check whether the Exclude earnings above UEL and Exclude earnings below LEL are selected. If they are but shouldn't be, you need to clear these check boxes, or vice versa.


Salary changes

If the employee has had a recent salary change, but the pension contribution doesn't reflect this, this could be due to the pay element settings. To check this, follow the steps below.

  1. Click System, and then click Pay Elements.

  2. Find and select the required pay element.

  3. Click Edit , and then click Ok.

  4. Click the Multiple tab.

From here, check whether the Do Not Recalculate check box is selected. If it is but shouldn't be, you need to clear it, then click Save.


Employer contribution is incorrect

If the employee contribution is correct, but the employer contribution is too high, this could be because the employee has multiple pension pay elements.

This can also cause the pension provider report to show a different value to the detailed pay run summary if the additional pay element isn't part of the pension provider scheme. To check this, follow the steps below.

  1. Click Employees, and then click Records.

  2. Find the employee, and then click View Record .

  3. Click the Standard Pay tab.

  4. Ensure the required pension pay elements are showing as included.

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