• Pegasus Opera 3 Support Team

How to Set Up Non-Pension Salary Sacrifice


This article describes how to set up salary sacrifice in Opera 3 for contributions to schemes other than pension schemes, for example child care vouchers or cycle to work schemes.

You can set up value-based salary sacrifice payments for employees who agree to give up some of their contractual cash pay in return for non-cash benefits. Value-based salary sacrifices can be set up either for a pension contribution or for other types of contribution, for example child care vouchers or the Cycle to Work scheme. When Advanced Pensions Processing is in use you can also set up percentage based salary sacrifice pension payments so that salary sacrifice payments are calculated automatically.

This can be financially beneficial to both you the employer and also to the employee because of lower Income Tax and National Insurance contributions. If the employee's pay is subject to an attachment order you should contact HMRC to check whether their attachable pay is affected.

This is not a deduction from pay but rather an agreement to give up part of cash pay in return for non-cash benefits. They are displayed as a negative payment (not a deduction) on both the Payments tab of the Payroll >Processing>Pay & Deductions form and on the employee's payslip.

To set up Non-Pensionable Salary Sacrifice:

1. Open the Payroll folder and then click Maintenance or click the Payroll & HR tab on the Ribbon Bar and then clickPayroll>Maintenance.

2. Maintain the payment profile/s:

1. Click Payment Profile.

2. Create a new profile for salary sacrifice or locate the first existing affected payment profile using the List tab or by pressing CTRL+F to search for the record. 3. On the General tab enter a description, leave the Type box blank and set the Taxable and NI'able boxes as necessary - depending on whether the Income Tax and National Insurance contributions will be reduced by the salary sacrifice payment. 4. Select the Salary Sacrifice box and choose 'Other'. 5. To save the record, click the icon "Save" on the toolbar or press CTRL+S. 6. Repeat for each relevant payment profile. Then close the form.

3. Add the payment to the employee's record:

1. Open the Payroll folder and then click Processing or click the Payroll & HR tab on the Ribbon Bar and then click Payroll - Processing.

2. Locate the first affected employee using the List tab or by pressing CTRL+F to search for the record.

3. From the Action menu, [...]

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