If you run the Observation report for an employee receiving a salary adjustment, you may encounter one of two potential issues.
We have compiled a list of these issues along with their resolutions.
Employee is on a Week 1 basis
The employee is on a Week 1 basis, and their earnings exceed the allowed relief limit.
To resolve this, check the employee's Gross Pay for the period. For example:
An employee aged 56 has a Gross Pay of €4200.00 and an OAP rate of 35%.
The calculation is: €4200.00 * 35% = €1470.00 (the allowed limit).
This employee has AVC contributions of €2648.17 and a Pension of €32.94, totaling €2681.11.
Since €2681.11 exceeds the allowed limit of €1470.00, the pension contributions exceed the pension tax limit percentage of their Gross Pay to date.
📌Note: You can find OAP rates by following these steps in the Back Office:
Click CorePay then click Reference.
Click Advanced Reference Features then click Reference K-P.
Click Old Age Pension Rates then click Pension Tax Limits.
No date of birth recorded
The employee does not have a recorded date of birth.
To fix this, enter the employee's date of birth and then re-run the validation job.