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Set up pension deductions

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Summary

How to set up your company pension deductions in Sage Payroll.

Description

To use a pension, PRSA, or RAC in Sage Payroll, set up a pension deduction and associate it with a pension link.

NOTE: For further help with Construction Workers Pension (CWPS) deductions follow the steps on the construction article.

Resolution

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Follow the steps

 NOTE: Set up a pension link before you follow these steps to set up your pension deductions. 

  1. On the menu bar, click Company/Payroll then click Deductions.
  2. Click New, then set up the deduction as follows:
    TitleEnter a name for the pension deduction. For example, Pensions or PRSA.
    TypeClick Gross.
    Sub-TypeClick Pension / RAC / PRSA, or Pension / RAC / PRSA / CWPS if available.
    PensionClick the relevant pension link.

    CAUTION: Ensure the pension links are set up correctly for the deduction type. Avoid using DEM1 for sending information to your pension provider, as it contains demo data.

    AVCIf the deduction is an additional voluntary contribution, select this check box. 
    Multiply by the number of holiday periods

    Select this checkbox if the deduction applies to holidays. When you process an employee's time and pay, the value of a holiday deduction adjusts according to the number of holiday periods entered.

    CAUTION: This option is only available in weekly and fortnightly payrolls.

    Balance Type Click Accumulate a balance.
  3. Click Save.
  4. Repeat steps 2 and 3 for any other pension deduction you want to set up, then click Close.
  5. Assign pension contribution details to an employee.
  6. You can now start deducting contribution details from your employees' pay.

 NOTE: To record standard pension amounts and Additional Voluntary Contributions (AVCs), you must set up two separate gross deductions on your payroll.