How do I enable NI savings for employers?

As an employer, you can make additional Salary Sacrifice contributions to the employee's pension due to the savings you make from the ER National Insurance deductions.  The contribution type can be a Fixed Amount or Percentage contribution.

 

When you contribute by Salary Sacrifice, the employee saves on their national insurance tax, but the employer also makes a savings on national insurance. Some companies like to give that saving back to the employee as additional pension contribution amounts. Within Cintra iQ, you can easily provide this service. 

 

  Note:

The ERs NI Saving contribution pay elements for Salary Sacrifice can be selected from the data picker when creating a Payroll Report. Please note that this is derived from the employee's Salary Sacrifice pension contributions.  The pay elements can be found under the following Available Fields: Payslip-Payslip Summary as columns-ERs NI Saving: [Salary Sacrifice contribution name] Payslip-Payslip Summary as columns-ERs NI Saving[YTD]: [Salary Sacrifice contribution name]

1. Set up a Default Salary Sacrifice Pension Scheme for the employee.
   1. Navigate to the Pension/Benefits Scheme window. 
      Go to Cintra iQ: Payroll> Payroll Setup> Benefit Schemes> Pensions/Other Benefits.
   2. Click the New button. The New Scheme form appears. 
   3. Enter the Scheme Name.
   4. Select the Scheme Type if desired.
   5. Click the Next button. The Pension Scheme window appears.
2. Set up a Salary Sacrifice contribution for the employee.
   1. Navigate to the Contributions tab.
   2. Right-click: New in the Scheme Parts pane. The New Contribution form appears.
   3. Enter the name of the Contribution.
   4. Set the Employee Contribution details.
   1. Select the Salary Sacrifice Contribution option.
   2. Ensure the Create new addition heading option is selected.
   3. Enter an Addition Heading name. i.e. Salary Sacrifice.
      

        Note:

      This Addition Heading will appear on the employee's payslip.

3. Set up the contribution details for the employer.
1. Select the Create New overhead heading option.
2. Enter ErSS as the heading name.
3. Select Contribution Type: Contributions are a fixed amount or percentage.
4. Click the Next button. The Pension Scheme Contribution window appears.
5. Set up the Employer NI Savings contribution:
   1. Navigate to the Main Contribution Attributes tab. 
   2. Enter the percentage of the NI saving that you want to give to the employees in the % of Er's NI saving to be contributed field.
      • To contribute no NI Savings, enter 0%.
      • To contribute the full 13.8% amount, enter 100%.
      • To contribute half the amount at 6.9%, enter 50%.
6. Continue to add Relevant Pay. 
7. Click the OK button. The contribution is now created.
8. Put the employee into the pension scheme.
   

     Important:

   Ensure that you enter the Percentage and Amounts values in the Employer Contributions settings of the Standing Pension Contribution form.

  Important!

If you would like some employees to have Salary Sacrifice NI Savings and some not, create one contribution record with Salary Sacrifice and another without, then apply the appropriate contribution to the employee's Pension Scheme Membership.