Incorrect pension contributions can occur when certain pay codes are unintentionally included in pensionable calculations. This issue typically occurs due to incorrect pay code configuration.
To resolve this, you'll need to exclude the pay code from pension calculations either globally or for specific pension schemes. To do this, follow the steps below in portal.
Exclude the pay code from all pension calculations
If the pay code should not be pensionable under any circumstances, follow the steps below.
Click Settings then under Codes, click Pay Codes (Classic).
From the Pay Code drop-down menu, select the relevant pay code.
Turn off the Pensionable ER toggle.
📌Note: If you don't want to include this in the employee pension, turn off the Pensionable EE toggle.
Click Save.
Exclude pay code for a specific pension scheme
If the pay code should only be excluded for a particular scheme type, follow the steps below.
Click Settings then under Codes, click Pension Scheme.
From the Pension Code drop-down menu, select the relevant scheme code.
Click Next Page then turn on the Pay Code Exclusions toggle.
Click List then click Add.
From the Pay Code drop-down menu, select the relevant pay code.
Turn on the Pensionable ER toggle.
If necessary, enable Pensionable EE toggle.
🤓Tip: If you need to exclude it from EE Pensionable.
To save changes to exclude pay code, click Save.
Click Save.