Set pension contributions to calculate on qualifying earnings
Set up your employees' auto enrolment pension contributions to calculate on their qualifying (banded) earnings.
Auto enrolment pension contributions are based on a band of gross qualifying earnings between a lower and upper limit. Qualifying earnings includes salary and wages, commissions, bonuses, overtime and statutory payments.
Both you and your employees' contributions are smaller if you choose to calculate them on qualifying earnings. Any existing employees contributions are also decreased.
Workplace pensions (GOV.UK website)
- In the Settings menu, select General Settings.
- Under Features, click Payroll Settings.
- Click the Workplace Pension tab.
- Under Calculate on Qualifying Earnings, click Yes to calculate pension contributions on qualifying earnings.
- Click Save.