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Construction workers pension scheme (CWPS)

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Summary

This guide explains how to easily set up, record and submit CWPS deductions in Sage Payroll.

Description

The construction workers' pension scheme (CWPS) is a not-for-profit industry-wide scheme covering the entire construction industry in the Republic of Ireland. Let's take a look at how to process this.

NOTE: Before you can proceed with the steps in this article, you must create a CWPS pension link if you haven't already done so.


Resolution

Enable the CWPS feature

  1. From the menu bar at the top of your window, click Company/Payroll then click Construction Workers Pension.
  2. Select the Use Construction Pension Feature check box.
  3. In the Construction Industry Employer Number box, enter your employer number.
  4. To save the changes you've made, click OK.
  5. Repeat the steps above in each of your payrolls.

Edit the CWPS rates in your software

If your pension provider, accountant or another advisory body want you to change the CWPS contribution rates within your software, please refer to our help guide for guidance with this.

Set up the CWPS calendar

  1. From the menu bar at the top of your window, click Company/Payroll then click Construction Workers Pension.
  2. Click the Calendar tab, then click Create New Calendar.
  3. Enter the start date of the first scheme week of the year.
    NOTE: The CWPS year starts on the final Monday of September each year. The 2022 CWPS year starts on Monday, September 27, 2021.
  4. Click Create, then click OK.
  5. Repeat the steps above in each of your payrolls.

Set up CWPS deductions

Before you can process CWPS on your payroll, you must set up the relevant CWPS gross and nett deductions. If you want to process a CWPS deduction as an additional voluntary contribution (AVC), you must create a separate deduction for this also.

Set up a CWPS gross deduction

  1. On the menu bar, click Company/Payroll then click Deductions.
  2. Click New, then set up the CWPS gross deduction as follows:
    Title Type CWPS Gross.
    Type Click Gross.
    Sub-type Click Pension / RAC / PRSA / CWPS.
    Pension Scheme Click the CWPS pension link.
    Additional Voluntary Contribution (AVC) Clear this check box.
    Balance Type Click Accumulate a balance.
  3. Click Save then click Close.

Set up a CWPS nett deduction

  1. On the menu bar, click Company/Payroll then click Deductions.
  2. Click New, then set up the CWPS net deduction as follows:
    Title Type CWPS Net.
    Type Click Nett (After Tax, PRSI & USC).
    Sub-type Click Pension / RAC / PRSA / CWPS.
    Pension Scheme Click the CWPS pension link.
    Additional Voluntary Contribution (AVC) Clear this check box.
    Balance Type Click Accumulate a balance.
  3. Click Save then click Close.

Set up a CWPS AVC deduction

  1. On the menu bar, click Company/Payroll then click Deductions.
  2. Click New, then set up the CWPS AVC deduction as follows:
    Title Type CWPS AVC.
    Type

    Click Gross.

    Sub-type Click Pension / RAC / PRSA / CWPS.
    Pension Scheme Click the CWPS pension link.
    Additional Voluntary Contribution (AVC) Select this check box.
    Balance Type Click Accumulate a balancee.
  3. Click Save then click Close.

Assign an employee to a CWPS category

You must assign a CWPS category for each of your employees in the CWPS scheme. This specifies the broad construction activity category to which they belong.

  1. From the menu bar at the top of your window, click Processing then click Employee Details.
  2. Next to the Surname box, click browse  and click the relevant employee.
  3. Click the Deductions tab.
  4. Under Construction Worker's Pension Scheme, click browse and click the relevant CWPS category.
  5. In the Membership No. box, enter the employee's CWPS number.
  6. Click Save.

    NOTE: A number of options in the employee record now become mandatory and must be filled in. These include the employee's PPS number, address 1, county, start date and date of birth. If any of the previous information is missing, populate the relevant options, then repeat step 6.

  7. Repeat steps 2 to 6 for all employees you want to assign to a CWPS category, then click Cancel.

NOTE: The amount of each CWPS deduction (Gross/Nett/AVC) is taken from the Company CWPS settings (Company/Payroll > Construction Workers Pension > Rates tab). Once an employee is assigned a CWPS category, the appropriate rates are automatically shown in the Employee Record/ Deductions tab. You can't edit or remove these CWPS deduction amounts.

Generate a CWPS report and file

Once you've finalised your payroll, you can generate a CWPS report and pension contribution file that contains both employee and employer pension information. If your pension provider wants this information sent to CWPS electronically, you can upload this file to them on their website, where they make the payments directly to your employees' pension account. Find out how >

Stop contributions

To stop contributions for an employee, remove the CMWP Category from the Employee Details Deductions tab.