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What are the top 3 payroll-to-pension processing errors, and how can PensionSync help?

9th Dec 2021
Brought to you by
PensionSync logo
PensionSync is the UK’s only one-stop shop for payroll-to-pension administration, working alongside...
Share this content

PensionSync Customer Support Manager Heidi Swift has compiled a summary of the top 3 payroll-to-pension processing issues. 

How many of these apply to your payroll service? And how can PensionSync help?  

#1 – Pay periods

The main query we get from users processing payroll is that their pay period dates don’t match the provider’s expectation, therefore they’re unable to submit the contributions and they get the dreaded ’Rejected’ notice.

An example of this is where payroll may be set up as a monthly period using tax months, but the provider is expecting a calendar month. If you were to submit the monthly tax dates from payroll (6th – 5th), they would generally be rejected as the provider is expecting 1st – 30th and the date can’t deviate from 1st, leaving you with a ‘Rejected’ or ‘Failed’ warning.

With PensionSync, you wouldn’t necessarily even know this issue existed, because we rectify it for you from behind the scenes using our expert-led technology, by aligning it to the provider’s expectation (within certain thresholds) saving you the hassle of manually changing dates in payroll and removing the headache of logging in to the provider’s own portal to see how it can be rectified. Happily resulting in a green ‘Successfully Completed’ notice.

Another scenario where we often receive queries, especially where contributions have been manually submitted previously, is where pensions are innocently allocated to the same period as the payroll, which is effectively incorrect when the pay date falls into the next period. This is really common and it’s perfectly normal to question it if you’re unsure. Most payroll professionals understand the rules set by The Regulator but some don’t (some pension providers don’t know the rules either!) but, let’s face it, they can be a tad confusing.

At PensionSync we ensure your submission is aligned to the correct pension period and will ensure this is applied correctly going forward, helping you to follow the rules put in place by the Pension Regulator.

#2 - Groups and Payment Sources

At PensionSync, by communicating with their APIs, we pull all the scheme information back directly from the pension providers so we have a record of the groups set up on your scheme and the payment sources used for the collection of your payment. This is particularly useful for Nest schemes where Group IDs are case sensitive or have different pay periods and non-standard contribution rates. We also sync the details of the payment sources set up with the provider.

Using our built-in technology, PensionSync will ensure the data being sent from payroll is going to the correct Groups and Payment Sources.  We will flag any issue immediately so it can be corrected from the outset before it even reaches Nest, saving you time, headaches and giving you peace of mind that the data in payroll is exactly set up as per your scheme.

 #3 - Niggly little issues that would cause you endless errors

You wouldn’t believe the amount of data mismatches that would throw out an error if the information on payroll doesn’t match exactly to that held at the pension provider! Something so minor as a space after a name or a mismatch in a salutation. We automatically correct hundreds of thousands of silly little errors that go completely unnoticed to our users. We have developed our systems to do exactly that. To make payroll to pension processing as straightforward, accurate and efficient as possible, so you can carry on with your day job.

Don’t believe us? Give it a go by using the free 3 month trial. What have you got to lose?

Sign up here:

PensionSync Free Trial

PensionSync carries out up front validation and applies automatic corrections to many common payroll-to-pension errors. For any errors that PensionSync can't automatically correct, you can quickly and easily make corrections in the PensionSync Dashboard without the need for any payroll rework. Check out Heidi's demonstration of Flexible File Correction here: