Configuring auto-enrolment parameters involves setting up the criteria and processes for automatically enrolling eligible employees into pension schemes.
You need to configure these parameters to streamline the enrolment process, to make it easier for employees to participate in pension plans, and minimize administrative burdens.
The importance of this configuration lies in its impact on employee financial security, promoting long-term savings and satisfaction while helping your organization avoid penalties related to non-compliance.To configure Auto Enrolment parameters watch the video or follow the steps below:
View and manage auto enrolment parameters
Click Settings, then under UK Tax Rates, click General.
Scroll to the bottom of the page, then click Auto Enrolment.
View and update auto enrolment parameters then to save changes, click Save.
Pay Codes
Click Settings, then under UK Tax Rates, click General.
Scroll to the bottom of the page, then click Auto Enrolment.
From the Options drop-down menu, click 01-Pay Codes.
To exclude a pay code, beside the relevant pay code, turn on the Non Qualifying toggle.
To save changes, click Save.
Pay Groups
Click Settings, then under UK Tax Rates, click General.
Scroll to the bottom of the page, then click Auto Enrolment.
From the Options drop-down menu, click 02-Pay Groups.
To exclude a pay group, beside the relevant pay group, turn on the Non Qualifying toggle.
To save changes, click Save.
Pension Schemes
Click Settings, then under UK Tax Rates, click General.
Scroll to the bottom of the page, then click Auto Enrolment.
From the Options drop-down menu, click 03-Pension Schemes.
To exclude a pension, beside the relevant pay group, turn on the Non Qualifying toggle.
To save changes, click Save.
State Pension Ages
Click Settings, then under UK Tax Rates, click General.
Scroll to the bottom of the page, then click Auto Enrolment.
From the Options drop-down menu, click 04- State Pension Ages.
To make changes to the eligibility for a state pension, edit the relevant field.
To save changes, click Save.
Earnings Parameters
Click Settings, then under UK Tax Rates, click General.
Scroll to the bottom of the page, then click Auto Enrolment.
From the Options drop-down menu, click 05- Earning Parameters.
To make changes to the earnings threshold for the tax year, edit the relevant field.
To save changes, click Save.
Pension Rules
Click Settings, then under UK Tax Rates, click General.
Scroll to the bottom of the page, then click Auto Enrolment.
From the Options drop-down menu, click 06- Pension Rules.
Click the Default Pension Rules tab to configure the default scheme for a specified employee category (this is optional).
Select the reference item from the dropdown.
Select the Pension Scheme for each category.
Click Save.
Click the Postpone Pension tab to apply postponement to groups of employees (this is optional).
Select the reference item from the dropdown.
Enter a value into the relevant column
Click Save.
Click the Exclude tab to exclude groups of employees from auto enrolment (this is optional).
Select the reference item from the dropdown.
Enable the Exempt toggle for the relevant categories.
Click Save.
Company Parameters
Click Settings, then under UK Tax Rates, click General.
Scroll to the bottom of the page, then click Auto Enrolment.
From the Options drop-down menu, click 07- Company Parameters.
Beside the relevant companies, turn on the Apply Auto Enrolment toggle.
Enter the staging period if required.
To save changes, click Save.
For further guidance, check the auto-enrolment user guide.