Enroll staff into a pension scheme

All new eligible hires must be manually enrolled into a pension scheme once they have been added in UK Payroll.

Note: All new eligible employees must be enrolled before they can opt-out of the pension scheme. To learn more about eligible and ineligible employees, see Pension duties.

How to enroll staff into a pension scheme

1. From the left side bar, navigate to Employees.
2. Select the relevant employee.
3. Select the Pension tab.
4. Click Set pension provider and choose the correct provider from the drop down menu. UK Payroll will assess the employee’s pension eligibility automatically.

   Note: To learn how to set up a pension scheme, see Set up a pension scheme.

5. Click Set pension status.
6. Select the applicable status.
   • Enrol as new employee - Enrol the employee into the pension scheme in the current month. Only select this option if the employee isn’t already entered in your pension provider’s portal.
   • Already enrolled in provider - This marks the employee as already enrolled in your pension scheme.
   • Postpone - Postpone the employee’s auto-enrolment into the pension scheme by up to 3 months. To learn more, see The Pension Regulator’s Postponement.
   • Opt-out - For existing employees who have opted out of the pension scheme. For more information, see Opt-outs.
   • Scheme leaver - For employees leaving your company.
7. Select the Pension type from the drop down menu and fill in the other required information.
8. Make sure Send enrolment letter is toggled on, if available.

   Note: Once an employee has been assessed, you must write to them individually to explain how automatic enrollment applies to them. You must write to them within 6 weeks of their first assessment or when they become an eligible jobholder. UK Payroll provides letters for eligible employees that are automatically enrolled and for eligible employees that are enrolled with a postponement. To learn more, see Writing to your staff.

9. Click the relevant Summary to review the information you have entered.
10. Depending on the action you’re taking, click Enrol employee name, Postpone employee name, Opt-out employee name, or Process employee name as left to complete the process.

How to customize pension contributions

If the employee’s contribution rates differ from the company standard, amend them in the Pensions tab.

1. Navigate to Employees > select the relevant employee.
2. Select the Pensions tab.
3. Toggle Customise contributions for this employee.
4. Enter the updated contributions amount, either by percentage or monetary value.
5. Click Save changes.

How to opt-out an employee

Once an employee is enrolled into your pension scheme, your pension provider sends them a welcome pack with details on opting-out. If you use an integrated pension provider, UK Payroll will automatically opt them out of the pension scheme once they opt-out directly with the provider.

If you don’t use an integrated pension provider, you need to opt the employee out manually.

1. From the left side bar, select Employees.
2. Select the relevant employee.
3. Navigate to the Pension tab.
4. Select Change status.
5. Select Opt-out.
6. Enter the Pension type and Opt-out date (the date the employee opted-out directly with the pension provider).
7. Click Opt-out summary.
8. Review the details and click Opt-out [employee name].

Note: UK Payroll won’t automatically refund contributions if an employee opts-out during the opt-out window. To learn how to apply a refund, see Apply a pension refund.

FAQs

Why can’t I enroll an employee?
Check that the key employee details are correct (employee ID, email address, and address are complete; address lines 1 and 2 don’t exceed 35 characters; no special characters are used in names or addresses). If these details are correct, check that the employee isn’t already enrolled with your pension provider.

Make sure to select Already enrolled if you have just transferred to UK Payroll and your previous payroll provider has already added postponed employees to your pension provider portal.

What if a new hire with pro-rated pay falls below the pension threshold?
If a new hire’s pay is pro-rated due to starting part-way through a pay cycle, they may not meet the criteria for auto-enrollment. If you operate a postponement period, set their pension status to postponed and enter the deferral date accordingly. If you don’t operate a postponement period, the employee will be re-assessed in the following pay periods until the become eligible or choose to join a scheme.

Where can I see employee and employer pension contributions?
Employee and employer relief at source and net pay arrangement pension contributions are listed separately in an employee’s payslip. Salary sacrifice pension contributions appear in an employee’s payslip as the total pension contribution and the employer contribution. The payroll report displays pension contributions as the total pension contribution and the employer contribution.