Is there any way to configure the system to convert employee savings as a result of salary sacrifice? I’m aware the system calculated as add the employer savings but for our scheme we also calculate the employee savings too.
Details below:
Convert employee savings
Select either Yes or No.
If you select No:
The employee savings generated through exchanging salary are not converted to pension contributions.
The employee’s gross yearly salary will reduce by only the amount of the contribution being exchanged. Their take-home pay will increase as they’re paying less income tax and National Insurance contributions.
As the employee’s gross yearly salary will reduce by the amount of the exchange, the cost to the employer will also reduce as they’ll pay less National Insurance contributions.
Pension contributions will remain the same and the employer takes on the responsibility for paying the pension contributions.
If you select Yes:
The employee savings generated through exchanging salary are converted to pension contributions.
The employee’s gross yearly salary will reduce by slightly more than the amount of the contribution being exchanged so that their take-home pay will stay the same.
As the employee’s gross yearly salary will reduce, the cost to the employer will also reduce as they’ll pay less National Insurance contributions.
Pension contributions increase as savings are redirected to the employee’s pension plan. The employer takes on the responsibility for paying the pension contributions.
Hey James - Unfortunately we are unable to facilitate this at the moment. I will be adding your idea to our future considerations area. I will update this idea if anything changes.