Setting up a salary sacrifice pension allows employees to enhance their retirement savings while benefiting from potential tax savings.
A salary sacrifice pension plan involves employees agreeing to reduce their gross salary in exchange for employer contributions to their pension scheme. This arrangement can lead to lower National Insurance contributions for both the employee and the employer, ultimately increasing the amount saved for retirement.
Establishing this setup not only encourages better financial planning for the future but also provides employees with a valuable benefit that can significantly boost their pension pot over time.
To set up a salary sacrifice pension on the left side of a payslip, you need to enable Pre-Taxable Deduction Print Side toggle.
To do this, follow either of the steps below in portal.
Click Settings then under Codes, click Pay Codes(Classic).
From the Pay Code drop-down menu, select the relevant pay code.
Click the Deductions tab.
Under Payslips, turn on the Pre-Taxable Deduction Print Side toggle.
Click Save.
OR
Click Settings then under Codes, click Pay Codes(Classic).
In the Search field, search for the relevant pay code(deduction).
Click the three-dot icon then click Edit.
Click Rules then click ADD.
From the Rules drop down menu, search for pre taxable.
Enable Pre-Taxable Deduction Print Side.