Payroll & File Upload Guide

Setting up pension deductions and creating Reports User Guide

Setting up pension deductions and creating Reports

1. Introduction Setting up a pension is usually a fairly straightforward process in most payroll systems but because this is a general guide you might need to refer to your payroll user guide for specific information. Our system is designed to make it as easy as possible for you to run an auto enrolment Pension Scheme. Every time you need to do something we will let you know. Unlike some other solutions, with our system you simply provide your data after you have closed your payroll and, if any changes are needed, we will tell you before your next payroll run.

a) How pensions work in payroll systems

b) Your payroll and auto enrolment

Your payroll system is used to calculate the pension contributions that need to be deducted from employees. To do this you need to:

Every time you pay employees, you will need to provide us with payroll data so we can assess employees, communicate with them, collect their pension contributions and pay them into the Pension Scheme. We also maintain the audit trail required by law.

• Set up the Pension Scheme • Put employees into it at the appropriate time • Select the earnings on which pension contributions are payable • Set the level of pension contributions to be paid as a percentage of earnings • Maintain employees’ records

The data you must provide every time you run the payroll is for all employees, not just those who are enrolled into the Pension Scheme.

1 of 16

Setting up pension deductions and creating Reports

2. Setting up the auto enrolment pension for the first time a) Setting up the pension in your payroll This section sets out the information that is likely to be needed in order to set up the pension in payroll. The payroll system will use this information to calculate the pension contributions that need to be deducted from employees’ wages and those that the employer has to pay when employees are enrolled into the Pension Scheme.

2 of 16

Setting up pension deductions and creating Reports

i) Setting up the company Pension Scheme

Information to help you set up the pension in payroll Scheme type:

The Creative Pension Trust is a Money Purchase Scheme.

Qualifying Scheme

The Creative Pension Trust is a Qualifying Workplace Pension Scheme

Scheme name

The Creative Pension Trust

Contracting out

The Creative Pension Trust is not a contracted out scheme Contributions payable to The Creative Pension Trust are calculated based on Qualifying Earnings The constituent parts of Qualifying Earnings for auto enrolment purposes are:

Pensionable pay definition (this is the earnings on which contributions are calculated)

• Salary or wages • Commission • Bonuses • Overtime • Statutory Sick Pay • Statutory Maternity Pay • Ordinary/additional statutory paternity pay • Statutory adoption pay Only those earnings between £5,824 and £43,000 per year, or £486 and £3,583 per month, or £112 and £827 per week for the 2016/17 tax year are pensionable. You must ensure your payroll is set up correctly so that earnings below and above these amounts are not used to calculate pension contributions.

Salary sacrifice

Contributions cannot be paid by salary sacrifice. 1% employer contribution 1% employee contribution

Contributions to be set up in the payroll (as a % of Qualifying Earnings)

Tax basis

These are the current mandatory minimums and is the default contribution basis (we will let you know when these change). If contributions greater than these minimums are required, please call our helpdesk on 0345 606 0424. Contributions are taken before tax is assessed in the payroll (often referred to as the Net Pay Basis), therefore 1% of qualifying earnings must be collected from the scheme member’s gross salary before income tax is assessed. Do NOT ‘net’ this figure down or reduce it to deduct standard rate tax relief.

If there is a Pension Scheme already set up in payroll for some or all employees, please call our helpdesk on 0345 606 0424 before proceeding any further. 3 of 16

Setting up pension deductions and creating Reports

ii) Assigning employees to the Pension Scheme Once you have set up the Pension Scheme (at a company level) and when employees need to be enrolled into the Pension Scheme, you will need to adjust the employee payroll record within the payroll system. This enables contributions to be deducted from their salaries when they have to be enrolled. Typically this will be done through the pension or deduction section of the payroll system in the individuals own record. Please refer to your payroll software user guide for specific information about how this is done. (We will tell you when you need to enrol employees into the Pension Scheme, please do not start deducting contributions for any employees until you are notified to do so.) Before staging date we would recommend you run test examples for a small sample of employees to ensure the payroll is calculating and deducting the correct pension amounts from the employee’s wages. Please see the table below for some examples of the contribution that would be payable for monthly and weekly pay periods.

Pay Frequency

Earnings

Contribution Due

Contribution Calculation

Monthly

£1,000

£5.14

£1,000 - 486 x 1%

Monthly

£5,000

£30.97

£3,583 - 486 x 1%

Weekly

£500

£3.88

£500 - 112 x 1%

Weekly

£1,200

£7.15

£827 - 112 x 1%

b) Providing data We need certain employee information every time you process the payroll. This enables us to assess employees, communicate with them and confirm to you when employees need to be enrolled into the Pension Scheme. Note: we need employee data for all employees every time the payroll is run, not just for the employees who are enrolled into the Pension Scheme.

4 of 16

Setting up pension deductions and creating Reports

Employee information we need and creating your Report

The data fields required in the report that you upload into our system each time you close the payroll are detailed below. If this data can be provided in this exact format there will be no other information you need to provide. If however you are unable to replicate this template our system can be easily configured to accept the reports generated from your payroll software. Importantly, if you can generate a report which includes all of this data and/or more, we can easily map this so our system will accept the report template that you produce. If however you cannot produce a report that includes all of this data, the minimum information that must be provided every payroll run is highlighted in yellow in the Template Data File shown on page 6. The missing information can be incorporated into your first file upload, with subsequent reports incorporating the highlighted fields only. This will mean that for any new joiners, the additional information that can not be provided through the regular upload report will have to be entered manually. Please call the helpdesk if you need any assistance. If you can forward to us the template data you can generate from your payroll software (incorporating at least the highlighted fields) we will be able to map this for you on our system. Entering missing information each pay period Every time you provide payroll data to us we will tell you on-screen if there is anything missing and you will need to provide it before you can complete your update. We will let you know of any changes that you need to make to your payroll before the next payroll run at the end of the process . We will also send an email to you in advance of every payroll date to remind you to upload your payroll report. Uploading your pay data to our system With our solution you will only ever have to make changes to the employees’ payroll records at the following payroll run. You do not have to wait for any reports to be sent to you before you process the payroll.

5 of 16

Setting pension deductions and creating reports Template Data File Employee Payroll Number

Title

First Name

Surname

NI Number

Date of Birth

Gender

Address Line 1

Address Line 2

Address Line 3

Address Line 4

Postcode

Date Joined Company

Email Address

Gross Earnings for the pay period

Employee contribution amount

Employee AVC

Employer contribution amount

Employer AVC

Number

Text

Text (no initials)

Text

NI format e.g. AB 123456C

dd/mm/ yyyy

M/F

Text (no commas)

Text (no commas)

Text (no commas)

Text (no commas)

Text

dd/mm/ yyyy

Text

Number

Number

Number

Number

Number

Loading the payroll data All headings (such as row 1 in the example above) MUST be removed from the CSV file that you upload.

Before the report is loaded into our system it must be converted to a CSV document. Importantly, you must ensure that any numeric fields are set to zero if they have no value and are not left blank and that Address Lines 1 and 2 have been populated (Address lines 3 and 4 can be blank). An example of what a file should look like before you upload it is shown below. 1

Mr

John

Green

AB123456C

06/01/1970

M

50 Croydon Rd

Croydon

Surrey

XY1 2AB

06/01/1990

[email protected]

1400

0

0

0

0

2

Miss

Jayne

Brown

BC234567A

07/01/1971

F

51 Croydon Rd

Croydon

Surrey

XY2 3AB

06/01/1991

[email protected]

1500

0

0

0

0

3

Mrs

Janice

Black

CD345678D

08/01/1972

F

52 Croydon Rd

Croydon

Surrey

XY3 4AB

06/01/1992

[email protected]

1600

0

0

0

0

4

Mr

James

White

EF4567891E

09/01/1973

M

53 Croydon Rd

Croydon

Surrey

XY4 5AB

06/01/1993

[email protected]

1700

0

0

0

0

6 of 16

Setting up pension deductions and creating Reports

d) Communicating with employees Employees and scheme members need to receive various statutory communications under the workplace pensions legislation. It is therefore very important that we have either a work or personal email address for employees. Where we hold a valid unique work or personal email address, we will supply these communications directly to the employee. Where we do not hold a valid email address, we must supply personalised communications to the employer which need to be passed to employees. In these circumstances, we cannot accept responsibility for delivery so we strongly recommend that valid email addresses are supplied. It is very important that communications are supplied to employees and scheme members in a timely manner as the communication often marks the start of a specific period such a postponement period or opt out window. If we have to send information to the employer it is very important that this is passed on to employees immediately. Providing a work or personal email address for employees minimises the administration needed to comply with auto enrolment.

7 of 16

Setting up pension deductions and creating Reports

3. How to upload payroll data files This section of our guide will show you how simple and straight forward it is to upload payroll data files into our automatic enrolment system. As with many things, get it right first time and you will save yourself from problems with future payroll runs.

8 of 16

Setting up pension deductions and creating Reports

Step 1 Check date of payroll is correct. Click ‘Browse’ to select file.

Step 2 Select the correct file and click open.

9 of 16

Setting up pension deductions and creating Reports

Step 3 Click ‘Upload’.

Step 4 If there are errors, this screen will appear. Note the error messages and rectify your file. Click ‘Reset Import’ to upload your amended file.

Example of Error Message

10 of 16

Setting up pension deductions and creating Reports

Step 5 This screen will then appear. At this point you can reset the import if there are still errors or if you have selected the wrong file. If so, selecting ‘Reset Import’ will start your upload from the beginning. If you have no errors click ‘Continue Import’ (and proceed to Step 7). If there are warnings against any employees, click on each employee to check the warning and tick accept where required. Please ensure you click every employee with warnings and then select ‘Continue Import’.

Example of Warning screen to check

Step 8 Please ensure you click every employee with warnings

11 of 16

Setting up pension deductions and creating Reports

Step 6 This box will appear if you have not accepted all the warnings.

Step 7 You have not finished at this point. If you have any zero earnings for this period you will need to follow steps 8 and 10, otherwise click ‘Confirm’ on this screen and go to step 11. If you have any missing data you will need to click on the highlighted ‘Complete Missing Data’ and provide the data (see step 9).

12 of 16

Setting up pension deductions and creating Reports

Step 8 Select reason in the dropdown box and click ‘Save’. If you have any employees who have left employment, this is how they are identified.

Step 9 If a member has data missing, click on ‘Complete Missing Data’ and the screen below will appear. Enter the missing details and click ‘Save’.

Example of missing Title

13 of 16

Setting up pension deductions and creating Reports

Step 10 Click ‘Save’ when missing details have been entered.

When done click ‘Confirm’ to move on to the next stage.

Step 11 This screen will appear after you have clicked ‘Confirm’. Click to print any communications for members without email addresses. If you print any communications, please distribute to employees immediately. Tick to confirm and click finish. You must click ‘Finish’ otherwise the upload will not complete.

14 of 16

Setting up pension deductions and creating Reports

Step 12 You have now completed your upload. Any changes for the next payroll will appear on the screen. These will also be confirmed by email. If there are no amendments for the next payroll, the PDF with the email will be blank.

15 of 16

Setting up pension deductions and creating Reports

How to contact us Phone: 0345 606 0424 between 9am and 5pm (Monday to Friday, excluding Bank Holidays) Email: [email protected] www.creativeautoenrolment.co.uk

16 of 16

Setting up pension deductions and creating Reports

Creative Auto Enrolment Limited (company no. 8554978) is a subsidiary of Creative Benefit Solutions Limited (company no. 6293305), which is authorised and regulated by the Financial Conduct Authority, reference number 473893. Both companies are registered in England and Wales. Their registered office is 125 London Wall, London EC2Y 5AL.

Helpdesk phone number: 0345 606 0424 Online: www.creativeautoenrolment.co.uk. Email: [email protected] CAE/0516/268 17 of 16