Calculate Pension Payments
When running the payroll each week/month the pension payment amount needs to be calculated for the employer and employee contributions.
The calculation can be based on the full earnings or the qualifying earnings. If it based on the full earnings then you pay the pension percentage on the gross salary amount. If you opt for qualifying earnings then you deduct £503 from the gross salary and calculate the pension percentage on the remaining amount.
Don't forget, that we do all of this for you if you use the NannyPaye Pension Service.