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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Conor Mills-Wade commented
We believe the Employers NI savings to pension contribution should be done automatically. Particularly for SMART pension schemes, this should be a standard option in Xero. Xero's core purpose is user-friendliness, yet managing SMART pension contributions through payroll is currently an extremely challenging task. We kindly request that you implement the necessary adjustments to ensure your software automatically processes these salary sacrifice savings contributions. Without this it really increases the payroll process which with this being added would make it a much more streamlined process.
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Gabriela Witek commented
yes, as per below comments this feature should be a standard option on Xero now where this pension option is widely available. Xero is all about making the users life easier, but at the minute payroll with SMART pension contributions is a mammoth task. please could you make necessary adjustment, so that your software can reflect those changes in salary sacrifice contributions.
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Sabera Kharodia commented
We want to add the Employers NI savings to pension contribution automatically rather than manually calculate and add as a fixed amount as this could result in errors affecting both employer and employees. If this could be added to Xero fairly quickly then we can move our payroll over to Xero.
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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.