In PayFit, some items of pay are not pensionable by default. For example, notice pay, childcare vouchers and buy or sell annual leave. However, some pension schemes are set up to include these items of pay in the pension calculation.
Note: If in doubt, always refer to your employment contracts and your pension provider's scheme details.
If you need to include these items of pay in an employee's pension calculation, you can either set a fixed contribution rate from the pension settings, or you can temporarily override the employee's pensionable earnings in the current month.
Set a fixed contribution rate
You'll first need to manually calculate the correct contributions, and then add the calculated contributions to the employee's record. To do this:
From the employee's record, click the Employment tab.
Scroll down to the Pension contributions section, then click Edit.
Under the Employee section, from the Contribution is a drop-down, select Fixed amount.
In the Contribution amount field, enter the manually calculated employee contribution.
Under the Employer section, from the Contribution is a drop-down, select Fixed amount.
In the Contribution amount field, enter the manually calculated employer contribution.
Click Save.
Tip: If this is a one-off adjustment to the employee's pension, remember to switch the contribution rates back to a percentage in your next payroll. You could also set up a reminder in PayFit for your next payroll run.
Temporarily override pensionable earnings
To temporarily override the employee's pensionable earnings in the current month, so the pension contributions are calculated correctly:
Note: The overwrite is for the current month only. If the employee's pensionable earnings will always be different, you'll need to add the overwrite in each month.
From the employee's record, click the Employment tab.
Scroll down to the Pension contributions section, then click Edit.
Under the Pensionable income section, toggle on the Would you like to overwrite the employee's pensionable income? option.
Enter the New pensionable income amount, then click Save.
For more information about pensionable earnings, please refer to our Help Centre article.