Set up auto enrolment with PensionSync

Connect Xero to your pension provider through PensionSync to ensure your contribution file is on time and contributions transfer directly.

Xero currently supports direct electronic pension submissions to NEST and The People’s Pension (TPP).

If you don’t use NEST or TPP, or don’t want to file electronically, you can set up manual auto enrolment and submit your pension contribution files manually.

Connect and file your pension contributions with NEST or TPP

  1. In the Settings menu, select General Settings.
  2. Under Features, click Payroll Settings.
  3. Click the Workplace Pension tab.
  4. Import or manually enter your Staging date.
  5. (Optional) Enter a Workforce postponement date, if you want to postpone assessment by up to 3 months. Xero will automatically add this date to all your employee records.
  6. (Optional) Enter Pension Admin Details. Xero will update these fields if NEST or TPP already hold this information.
  7. (Optional) Enter Signatory Information if you’re using Xero to send worker communications.
  8. Enter liability and expense accounts under Payment accounts.
  9. Under Pension Filing Due Dates, enter the dates that your pension provider expects you to complete your filings. Xero will update these fields if NEST or TPP already hold this information.
  10. Select your Pension provider and enter your Employer ID.

    Your employer ID in NEST is ‘NEST Employer ID’ and for TPP it is ‘Account Number’.

  11. Click Save and Connect.

  12. Xero will redirect you to a PensionSync authentication screen. Confirm your details with your pension provider to allow Xero to retrieve your scheme details and then Xero will send your pension filings.

    Authentication can take an hour. Xero will send you an email to let you know if your scheme has been retrieved.

    If you need to make changes to your scheme with your pension provider, update them and click Refresh Scheme Details to update them in Xero.

  13. Enter your Pension groups for each employee.

  14. (Optional) If you’ve been taking pension contributions before connecting to Xero through PensionSync, check each employee’s pay template to ensure the correct pension pay items are used.
  15. Confirm your scheme details are correct, then click Save and Connect.

What's next?

  1. Set up each employee’s taxes tab.
  2. Process your pay run. Xero will automatically assess employees and deduct contributions from any employees in the scheme.
  3. (Optional) Inform your staff about automatic enrolment if you are using Xero to do this.
  4. In the Payroll menu, select Pension Filings.
  5. Submit your filing to your pension provider.

Xero will send you an email letting you know if the file was successful. If the file is rejected, you will need to correct the errors before resubmitting.