UK payroll: non-pensionable earnings pay items.
Earnings items - common ones such as overtime, bonus, commission, should have the option to untick pensionable. We need the rates overtime are paid, but also whether it is pensionable or not as a choice. Currently work arounds (using other earnings) does not give the rates, which is needed for overtime, and manual calculations are needed which takes longer and has a higher chance of errors. Surely this cannot be hard to adjust in Xero Payroll.
Hi Steph, thanks for taking the time to share your feedback with us!
I wanted to let you know it's actually already possible to set up a non-pensionable earnings pay item that allows you to enter hours and a rate.
As you correctly noted, you can create this item using the Other Earnings category. Once you’ve added this pay item to an employee's pay template or directly into a pay run, the system actually allows you to enter Hours and a Rate for it, rather than restricting you to a fixed amount.
Hope this helps clear things up!f you need an extra hand you can raise a case with our Xero Support specialists. 😊