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
Sue Whitehouse
shared this idea
Hi everyone👋, thanks for the idea and support here. To be open and upfront we don’t have any plans in the near term to expand this functionality.
Right now, you can create an additional Employer Pensions pay item and add it to the employee's Pay Template. When the pay run is processed you'll be able to enter in the difference due, to ensure the total contributions equals the required value. If anything changes in this space, we’ll update you on this idea.
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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.