UK Payroll: Calculate pension contributions on pre-SMP earnings
Employer pension contributions for employees on SMP should be calculated on the employee's earnings before they went on leave, not on the reduced rate of 90%. Xero's calculation is currently on the latter with no option to overwrite. The correct calculation would be first choice, but the option to change figures would be helpful also
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Sue Whitehouse
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Louise Archer commented
This needs to be the case for the first 39 weeks of maternity leave. Employer pension contribution remains a percentage of pre-leave salary not actual earnings. This really should be calculated as per UK law by Xero, not left for every business to know as it is quite an obscure piece of legislation.