Payroll Extra - Multiple Company Pension Schemes

Datafile Software Solutions

Payroll Extra - Multiple Company Pension Schemes

The pension options within the Datafile Payroll application allow for one company pension scheme, a stakeholder pension scheme and for additional voluntary contributions via a deduction switch.

Company Pension Schemes can be configured to be calculated according to various rules that are set as advised by your pension company - whether the deduction is based on a Gross%, Basic%, Item% or Fixed Amount, whether the deduction is before or after tax, etc. Stakeholder Pension contributions can be calculated in a similar manner but are always calculated as an ‘After Tax’ deduction whilst Additional Voluntary Contributions are a keyed amount each period.

This new facility within the Payroll Extra application allows for up to 10 Company Pension Schemes to be configured with each scheme allowing various combination settings of the available rules. Any one of the company pension schemes can be set to be applied against an individual employee.

Installation

Payroll System Profiles

The available Pension Schemes are defined within the Payroll System Profiles. To update the scheme details select Installation from the main menu followed by Application Manager and then System Profiles. Select the Payroll application followed by the Payroll Profile parameter screen.As part of this new feature a second screen for Pension configuration has been added and the existing options from the first screen moved to this new second screen.

Any existing scheme settings are updated into the first entry (though no scheme title is set). For each scheme options available are: 

Pension Scheme Name– set the scheme name required.

Method (BGFI) – set the calculation method for the pension scheme.

• B – Basic %
• G – Gross %
• F – Fixed Amount
• I – Item %. If set then a pop-up will prompt for the Item No to base the deduction on.

Calculate up to UEL (Upper Earnings Limit) – if using a percentage rate calculation method set to limit the pensionable earnings to a maximum of the UEL for National Insurance Contributions.

Calculate over LEL (Lower Earnings Limit) – if using a percentage rate calculation method set to limit the pensionable earnings so that any deduction is only calculated for earnings over the LEL for National Insurance Contributions.

Net of Basic Rate Tax– set to reduce the calculated pension deduction value by the basic rate of tax.

Deduction for Tax Calc – set to deduct the pension contribution from taxable pay, leave blank to deduct after tax calculation. (All company pension contributions are deducted after NI is calculated)

Also carried over from the first Payroll profile scheme are the deduction methods allowed for Stakeholder pensions (set as required).

Database Changes

To allow use of more than the first pension scheme a new item is required on the Employee file, you may also wish to add a similar item to the P11 transaction file to log against each Payroll transaction the pension scheme applied. To add this new items select Installation from the main menu followed by Application Manager and then Restructure A Database. Select the Payroll application. Elect to update the Live Files and then select the Employee File. The existing data items are then displayed on screen, scroll-down to the required item number and create the following items:

File Item Type Description

EMP PENS-SCHEME X (20) Holds the title of the Pension Scheme used for the employee.

P11 PENS-SCHEME X (20) Holds the title of the Pension Scheme used for the employee at the point of the Payroll run. Note that if you choose to change the item name on the Employee file from that suggested that you should also change the item name on the P11 file as the system controls the update of this item based on same field name / type.

To insert a new item press <Enter> against a blank entry, enter the title as required and press <Enter>, select the item type (using the drop-down list if required), and depending on item type select the size required.

Once the additional item has been recorded press the <ESC> key and select the UPDATE button to save the database changes. When prompted respond ‘Y’ to the prompts to ‘Extract Existing Data to New Database Structure’ and, if appropriate, ‘Copy Table Entries from Old Database to New Database’. Final prompts ask to ‘Remove (.OLD) Database’ and to ‘Carry Out the Same Restructure on the BASE File as well’ – respond as required. If you select to update the base file you need to manually insert the new items at the same data item positions as on the live file.

Once the Employee item has been created then, if you wish to record the Pension Scheme on the P11 record, you can repeat the required entries within the P11 database.

Database Profiles

The new data item on the Employee File needs to be referenced within the Database Profiles.To update these settings select Installationfrom the main menu followed by Application Manager and Set Database Profiles. Choose the Payroll application before selecting the Employee Mandatory 4 parameter screen.

On the left of the screen is the prompt Pension Scheme – against this item reference the data item number of the equivalent item created above, <F4-Select> is available if required.

Application Screen Layouts

If implementing the multiple Pension Schemes then the Employee Maintenance screen needs to be updated to input the scheme title. To update the screen layout(s) users can sign on as the SYSTEM user-id (or if Premierany user with Installer rights) and right-click on the Employee Details menu option before selecting the Add New Employee Screen. Alternatively users can select the Installation option from the main menu followed by Application Manager and then Application User Facilities. Select the Payroll application before selecting Maintain Employee File and then Add New Employee Record.

To insert the new scheme item you’ll first need to add a text label, to do this use the mouse to position the cursor where required and then type the required text. To insert the data items position the cursor where required and press the <F4-Select> key and choose the data item required. Set whether items are view-only, mandatory or require uppercase input as required.

Once complete choose File and then Save & Exit before repeating the update for the Amend Employee Details screen.