Setting up a Salary Sacrifice contribution scheme is the same as setting up pension scheme contributions within Cintra iQ, except that you select the Salary Sacrifice Contributions option under the Employee contributions, and select or create new headings.
Because Salary Sacrifice is a contractual arrangement whereby an employee gives up the right to receive part of their cash remuneration, usually in return for their employer’s agreement to provide some form of non-cash benefit, a negative Addition Heading is created in order to deduct the amount from the gross pay. This addition heading appears on the employee's payslip.
To set up a salary sacrifice contribution
- Set up the new pension scheme for a fixed amount or percentage.
Important:
Ensure that the the Salary Sacrifice Contribution option is selected in the Employee Contribution details.
- Attach the scheme to the employee.
- Calculate. Once calculated, the Salary Sacrifice amount appears as a negative payment, while the Ers appear under the Overheads.
Information:
You can also enable NI Savings for employers through Salary Sacrifice contributions. For more information, see How Do I Enable NI Savings for Employers?