Setting up your Pension Scheme

You can find the pension setup on your homepage or in the menu on the left hand side under Company Setup.

Setting up your Pension Scheme

When setting up pensions, you have three options in Chronicle Payroll:

Manage Auto Enrolment within Chonicle Payroll

You may want to choose this option if you have a number of employees that meet the pension threshold and you want the software to assess them.

Manage Auto Enrolment Manually

If you do not need the software to assess your employees, because maybe you have only one employee and you know they do not meet the threshold or because you have a method in place already set up to assess your employees.

Exempt from Auto Enrolment

You may not have any employees that meet the criteria because you are a director and the sole employee.

Information you need to set up your pension scheme

You need to know the following details of your pension scheme:

• Provider - for example NEST, People Pension, Other.

• Is it a net or gross pay arrangement. (NEST is always net pay but other schemes can be either).

• Earnings basis - Qualifying or pensionable.

• Employee and employer contributions amounts either a fixed amount or percentage.

Further guidance on your responsibilities as an employer to provide a pension scheme can be found here at The Pensions Regulator.

Writing to your Employee

If you need to assess your employee, you need to send them a letter confirming if they have been enrolled. Letter templates from the Pensions Regulator can be found here.

If you are using a pension provider listed below, they may have suitable templates you can download and use or via their online employers portal.

• NEST - Employer Notices Templates

• The Peoples Pension - Resource Library

• Smart Pensions - Example Emails and Letters

• Workers Pensions Trust - Resources

Adding an employee to a pension scheme

Once you have set up your pension scheme, you will be able to add your employees to the pension scheme. If you have selected Manage Auto Enrolment within Chronicle Payroll, when you add your employees to a pay run, the software will automatically assess if they should be in a pension scheme.

To add an employee to the pension scheme, you can select Pension Plan in the drop down menu in Enter payments. For more guidance view How to Pay an Employee.