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If you are operating a salary sacrifice pension scheme, you can choose to put any of the National Insurance savings the company makes back into employee pensions by adding employer NI savings as an enhanced employer pension contribution.
How to set up an enhanced employer pension contribution
- From the left side bar, navigate to Settings > Pensions.
- Select the pension scheme where you want to apply employer NI savings.
- Make sure Salary sacrifice is marked. Then mark Percentage of employer NI savings to add to employee pension pots.
- Enter the percentage of the employer NI savings you’d like to add to employee pension pots.
- Click Save changes.
FAQs
What if I don’t want to put 100% of the NI savings back into a particular employee’s pension?
You can customize pension contributions for each employee manually. First calculate the amount of employer NI savings you’d like to contribute.
- From the left side bar, navigate to Employees > relevant employee > Pension.
- Toggle on Customize contributions for this employee.
- Change the Employer contribution unit from % to £ and enter in the amount of employer NI savings you’d like to contribute.
- Click Save changes.