Troubleshooting incorrect pension contributions

1. Go to Company > Pension Maintenance and select the relevant pension


2. Make note of the following settings:



3. Open and Pay the employee


4. Enter the Basic Pay, Additions and Deductions that are required for the calculation


5. When entering the additions and deductions, take note whether the elements are marked as ‘Pen’ and ‘QE’. If ‘Use Qualifying Earnings as definition of Pensionable Pay’ is ticked, as above, then you should be taking note of those marked as ‘QE’ otherwise, take note of the ‘Pen’ elements. 


You can check these from Open & Pay > Change > and clicking 'Create Addition'


6. Add Basic Pay + Additions + Deductions (where QE or Pen is ticked), this equals the calculation Basic Pay.


7. If the ‘Calculate EE/ER contributions on banded Qualifying Earnings’ is ticked, then you should next reduce the above calculated basic pay by the relevant thresholds. Generally (for 2021) this just needs to be reduced by 120 for weekly, 520 for monthly. If the employee is a high earner, you’ll need to take into account the upper band, also. 


8. Next, press Calculate and choose ‘More Info’, navigate to the ‘Deductions’ tab and you’ll have an ‘AE Pension’ value for EE and ER Pensionable Pay. This value should match the value calculated in steps 6/7.


9. Next take the Employee and Employer Percentages of this value to arrive at the final pension calculation amounts.


A little bit about us...


Qtac, a recognised payroll solutions provider in the UK, has been serving businesses for 30 years. Specializing in both payroll software and outsourced payroll services, Qtac caters to small businesses, large corporations, and payroll bureaux. Our software, recognised by HMRC, streamlines the payroll process, featuring RTI submissions, workplace pensions management, and a cloud-based portal for payslips and employee self-service. This software is supported by top-tier customer assistance, ensuring a smooth payroll experience.


Additionally, Qtac offers tailored ‘white-labelled’ outsourcing services. These services are particularly attractive to accountancy firms, as they save time, reduce stress, and mitigate payroll-related risks. By outsourcing to Qtac, companies can be confident in the knowledge that their payroll needs are being expertly managed.


Qtac's solutions are not just about functionality; they are about building long-lasting relationships with clients, offering them a combination of technology and expertise. Their commitment to adapting to client needs and providing reliable, efficient services has established Qtac as a trusted name in the payroll solutions sector in the UK. In essence, Qtac simplifies and enhances the payroll process for a diverse range of clients, ensuring compliance, efficiency, and customer satisfaction. 



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