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If operating a salary sacrifice pension scheme, employers can choose to put any of the NI savings they make back into the employee's pension. This is done by adding the employer NI savings as an enhanced employer pension contribution.
How does this work in Pento?
In Pento, you can set up the system so it automatically calculates 100% of the employer's NI that has been saved.
To enable this feature:
- Under Settings, go to Pensions
- Select the pension to which you want to apply employer NI savings to
- When selecting the salary sacrifice pension option, you can select the box to ‘Add employer NI savings to employee pension pot’
After selecting this option, you can save the changes and Pento will take care of the rest!
What if I don’t want to put 100% of the NI savings back into the pension?
There may be times when you want to put a different percentage of the employer's NI savings back into the pension, for example, 50% or 75%.
To do this in Pento you will need to calculate the employer NI savings made in that period and add this to the employer pension contribution for that month by amending the value of the pension in the employee’s pension tab.
- Go to employee > pension
- Change the employer contribution from % to £
- Pop in and update the contribution each period once you have worked out the amount of NI saved, and have added this to the original employer contribution calculated
After adjusting the contribution, you can save your changes by clicking on Change status.