Pension set up - How to set up a pension deduction in payroll
Company Pension set up – In this case, the company has their own pension scheme, CWPS pension or the employee has a PRSA pension that the employer deducts and returns to the pension company on behalf of the employee.
Select the company icon to open the company details screen. Add in pension details and save changes.
Employee Pension Details – Set up
Below is a guide on setting up the pension details in the ‘Employee Details Screen’. Once set up here the pension deduction is included in each new wage run.
Under the Pension tab on the employee details screen you create a Standard Pension, a PRSA (Personal Retirement Savings Accounts) or a CWPS (Construction Workers' Pension Scheme) for each employee.
Here you can add any pension contributions made by the employee and/or employer, plus any AVC (Additional Voluntary Contributions) the employee may make.
These contributions can be set as a fixed amount or a % of pensionable pay per.
Pensions are generally deducted from gross pay to take advantage of the PAYE tax savings on pension contributions.
If the pension deduction is set as fixed amount - Match the pension deduction to the pay frequency e.g. add a weekly deduction if the employee is paid weekly.
Save changes and when you process the next new wage, the pension deduction is included.
PRSA are highlighted in yellow, but you can do the same for the standard/company pension.
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