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BrightPay Pension Deductions

Pension contributions appear to be incorrect

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After reading AW for many years I have finally decided to join and make my first post so please be kind.

I am in the process of moving payroll software from Pegasus Opera to BrightPay ready for the start of the 20/21 tax year and have managed to import/set up everything I need without too much trouble.

However, when checking everything looks right for the April payroll, I seem to have a problem with the employee and employer pension contributions.  As a business we operate a contributions profile of 5% employee (ie 5% is deducted from the employee) and 5% employer.  When setting this up on BrightPay it doesn’t appear to calculate contributions correctly.

For example, we have an employee with monthly gross pension-able pay of £1,827.05.  Using Pegasus Opera payroll, the employee deduction is £91.35 (ie £1,827.05 x 5%) and the employer contribution is £91.35.

BrightPay using the same pension-able pay of £1,827.05 calculates the employee contribution as £52.29 and the employer contribution as £65.36.

I have emailed BrightPay support and they claimed this was to do with tax relief at source, but I’m not convinced because disapplying tax relief at source would simply change the employee contribution figure from £52.29 to £65.36.

I clearly have done something wrong in the set up but can’t for the life of me see what.  Do any users of BrightPay have any suggestions/ideas of where I need to look or what I need to change in the settings?


Replies (3)

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By Chris.Mann
02nd Apr 2020 12:55

Morning R2D2, sorry R5P.

Could it be the difference between, the settings in the earnings basis. That is, does the % apply to all pensionable pay, or, just to banded qualifying earnings only?

Thanks (1)
Replying to Chris.Mann:
Brainy Smurf
By R5P
02nd Apr 2020 13:04

I have changed the earnings basis in the pension settings from standard qualifying earnings to custom qualifying earnings and removed the limits. This now gives me the pension contribution figures I was looking for.

Thank you for your help it's much appreciated.

Thanks (0)
By lionofludesch
02nd Apr 2020 13:02

Yes, it's the earnings bands.

You seem to have chosen to deduct 5% of the whole pay rather than 5% of the excess above the threshold (which is what most folk do).

I don't use Brightpay but there'll be a box to tick or untick somewhere in the menus.

Thanks (1)
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