UK Payroll: Include NIC and PAYG savings in pension contribution when salary sacrificing
Salary sacrifice pension saving added back onto payslip
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Monica Gilbertson commented
We too want Xero to be able to calculate SMART salary sacrifice, whereby the NI saving from salary sacrifice is also added to the employee pension element. We have a very complicated spreadsheet that calculates this but this means in Xero we have to enter the employee contribution as a fixed amount, rather than just a percentage - and when NI rates change, we have to recalculate and change every employees' contribution manually.
Pension providers give salary sacrifice online calculators online so Xero should be able to replicate the calculations involved
e.g.https://www.legalandgeneral.com/retirement/pensions/workplace-pensions/calculators-and-tools/salary-sacrifice-calculator/
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Martin Scott commented
We need the pension contribution report to include the enhanced employer contribution from operating a pension salary sacrifice scheme please. In addition there needs to be a choice as to whether savings in Employer's NI also accrue to the employee's pension contribution or not.
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Alan Becker commented
It's common that employers add their NI saving onto the employee pension contributions and this feature is standard in many other payroll systems.