Add employer pension contributions

Make employer pension contributions to your employees that are different from the automatic enrolment (auto enrolment ) amount.

Mark employee as currently in a pension scheme

  1. In the Payroll menu, select Employees.
  2. Click the Taxes tab.
  3. Under Pensions, select 'Yes' under Currently in a Pension Scheme?.
  4. Click Save.

Set up employer pension as a pay item

If an employer pension pay item has already been set up, skip the setup and start adding the contribution to an employee’s pay template.
  1. In the Settings menu, select Payroll Settings.
  2. Click the Pay Items tab.
  3. Click Benefits, then click Add Benefit Type.
  4. Complete the form for your pension contribution type.
    • Enter a name for the benefit. This name appears in Xero and on employee payslips.
    • Under Benefit Category, select Pension.
    • Select a calculation type and enter the percentage or amount.
    • Select the liability account where the pension contributions are credited.
    • Select the expense account where the pension contributions are taken from.
  5. Click Save.

Add employer pension contributions to an employee's pay template

Make individual employer pension contributions to an employee by adding the percentage or amount to their pay template. These contributions happen every pay run.

  1. In the Payroll menu, select Employees.
  2. Click the employee you're adding employer pension contributions for.
  3. Click the Pay Template tab, then click Add New Benefit.
  4. Under Benefit Type, select your pension name from the list.
  5. Select a Fixed Amount or % of gross calculation type.
  6. Enter your company’s pension contribution amount. Optionally, enter your company's maximum amount.
  7. Click Save.