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A guide to managing your NEST pension scheme with PayFit

Kay North avatar
Written by Kay North
Updated over a month ago

Our NEST integration helps keep your pension data aligned between PayFit and NEST – but there are a few important steps and settings you'll need to manage to make sure everything runs smoothly.

What PayFit Does ✅

With NEST synced, PayFit can:

  • Automatically submit contributions to NEST

  • Validate NEST group rules

  • Manages opt outs & refunds

  • Sync data nightly between PayFit and NEST

  • Allow manual syncs when needed

What You’ll Still Need to Manage 🔧

While PayFit takes care of submissions, overall pension scheme administration remains your responsibility. This includes:

  • Setting up a pension scheme with NEST

  • Adding PayFit as a delegate in NEST (details below)

  • Managing employee movements between groups

  • Monitoring group contribution limits

  • Uploading manual files (if PayFit is not managing the pension)

  • Paying contributions directly to NEST

  • Handling re-enrolment duties and submitting your Declaration of Compliance

💡 PayFit will provide alerts and reminders for assessments and contribution deadlines, based on your company’s payroll setup.

Getting Started with the NEST Integration

To get started with the NEST integration,

Step 1: Add PayFit as a Delegate on NEST

To let PayFit connect to your NEST account:

  1. Log in to your NEST account.

  2. Go to Manage delegates > Add a new delegate > Add organisation.

  3. Use the following details:

    • Organisation name: PayFit

    • Delegate ID: TPA012732830

  4. Confirm, and select Full access on the next screen.

  5. Contact us via a HelpCentre Ticket to let us know you have started using NEST and we can ensure the accounts are linked.

Step 2: Activate the Integration in PayFit

  1. Go to Pensions > My Schemes in PayFit.

  2. Either click into your existing scheme or select Set up your pension scheme.

  3. Choose NEST, then enter your Employer Reference Number (starts with EMP).

  4. Follow the steps to complete the integration set up.

Important Things to Keep in Mind

  • Use Only One Payment Source: PayFit currently supports syncing only the first payment source listed in your NEST account. If you use multiple payment sources, the integration won’t work properly.

  • Maximum of 5 Pension Schemes: PayFit supports a maximum of five pension schemes per company, including any schemes beyond NEST. Please keep this in mind when setting up or updating schemes.

  • Group Payment Dates Must Match: All NEST groups must have the same payment due date.

    For example:

    One group may say "10th of the month following the earnings period"

    Another may say "10 days after the earnings period"

    This causes separate schedules within NEST’s contributions screen, and PayFit won’t be able to complete the submission.

To fix this:

  1. In NEST, create a duplicate group with the correct date.

  2. Move all employees into the new group in NEST by going to Workers > Filter by group > Select all > Change group.

  3. Then, in PayFit, sync your pension scheme from the Pensions > My Schemes page by clicking Sync Now.

  4. Ensure all employees are in the correct group on PayFit

  • Watch for Group Contribution Limits: If your NEST groups have upper limits on contributions, ensure employees don’t exceed them. Otherwise, you’ll need to remove the limit in NEST to avoid submission errors.

  • Changing Employee Groups: PayFit does not sync employee group changes to NEST. If an employee changes groups in PayFit (e.g. from a Relief at Source group to a Salary Sacrifice group), you'll also need to update this on NEST by logging into NEST and navigating to Workers > Edit and then moving the employee to the new group. This step is essential to avoid tax relief being over or under-claimed.

  • Make Sure Employees Have NI Numbers: Employees must have a valid National Insurance number to receive tax relief through NEST. If a contribution is submitted without an NI number the employee may not receive tax relief. Please ensure NI numbers are updated in both PayFit and NEST.

  • PayFit Submission Settings: If you want PayFit to submit pension data on your behalf, make sure you toggle this on in your scheme settings.

    If you’d like to stop PayFit from submitting, simply toggle off the setting in your PayFit scheme and raise a support ticket so we can disable submissions on our end too.

  • Contribution Deadlines: NEST submissions from PayFit are sent by the 10th of the following month. Please ensure your NEST group payment due dates reflect this. Setting an earlier date may cause issues with submission timing.

  • Syncing Data Manually: If you need to update pension data outside the nightly sync go to Pensions in PayFit and click Sync now.

Adding a New Group to an Existing NEST Scheme

If you need to add a new group to your current NEST setup, you can do this directly in NEST:

  1. Log in to NEST

  2. Go to Manage groups

  3. Click Add another group and follow the steps to set it up

Important Reminder:

  • Payment dates must match: Make sure the new group's payment due date matches the rest of your existing groups. If the dates don’t align, PayFit won’t be able to submit contributions for that group. You can revisit the section above on matching payment dates if you’re unsure.

  • Group limit: PayFit supports a maximum of 5 pension groups per company. If you exceed this, the integration won’t sync your data correctly. Double-check your current setup before adding a new group.

  • Move your employees: Don’t forget — you’ll need to move employees into the correct group on both NEST and PayFit. The sync won’t update group allocations automatically.

Once your new group is set up in NEST:

  • Go to Pensions > My Schemes in PayFit

  • Click Sync now to manually trigger the update

  • Or wait for the automatic nightly sync – the new group will appear in PayFit after that

FAQs

Can an employee contribute a higher percentage than the standard percentage?

Yes, employees can contribute a higher percentage – as long as their NEST group doesn't have an upper contribution limit.

If a limit is in place, you'll either need to:

  • Ensure the employee’s contribution stays within that limit, or

  • Increase or remove the limit directly in NEST.

To check or amend the limit:

  • Log in to NEST

  • Go to Manage groups, then select the relevant group and view the scheme details

Once you've confirmed the change complies with the group rules, update the employee’s contribution in PayFit by either:

  • Going to Employee record > Employment > Pensions, or

  • Via Pensions > My Schemes

My employee wants to make a one-off contribution or AVC.

Additional Voluntary Contributions (AVCs) let employees pay more into their pension – for example, to boost their retirement savings or contribute part of a bonus.

⚠️ These contributions count towards the employee’s pension annual allowance, so it’s important they’re aware of any limits.

To add an AVC:

  1. Go to the employee’s record in PayFit

  2. Click the Employment tab

  3. Scroll to Pension contributions and select Additional Voluntary Contribution

  4. Click Add a new AVC

  5. Enter a start date

  6. Choose Fixed amount or Percentage

  7. Choose One-off or Monthly, then click Save

👉 You should also check that their NEST group doesn't have an upper contribution limit in place – if it does, the AVC must fall within that limit or the limit should be adjusted on NEST under Manage groups.

Still Have Questions?

Our article on the NEST integration details how the integration works.

Our article on reporting responsibilities details what remains your responsibility as the customer, and what PayFit handles on your behalf.

Let us know if you need a hand getting things set up or troubleshooting sync issues – we’re always happy to help!

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