Pension settings can be found under Company Setup. When you first set up, there will be a box on the homepage asking you to set it up.
Setting up your Pension Scheme
When setting up pensions, you have three options in Shape Payroll:
Manage Auto Enrolment in Shape Payroll
You may want to choose this option if you have a number of employees that meet the pension threshold and you want the software to assess them.
Manage Auto Enrolment Manually
If you do not need the software to assess your employees, because maybe you have only one employee and you know they do not meet the threshold or because you have a method in place already set up to assess your employees.
Exempt from Auto Enrolment
You may not have any employees that meet the criteria because you are a director and the sole employee.
You can set this information from the homepage by selecting Pension Setup or by selecting Pension Settings under Company Setup in the side menu.
Information you need to set up your pension scheme
You need to know the following details of your pension scheme:
Provider - for example NEST, People Pension, Other.
Is it a net or gross pay arrangement. (NEST is always gross pay but other schemes can be either).
Earnings basis - Qualifying or pensionable.
Employee and employer contributions amounts either a fixed amount or percentage.
Once you have all the above details, you can select +Add Pension Scheme.
The drop down menu will show the following:
The People's Pension
Workers Pension Trust
Other - for pensions that are different from the above.
Click Save and you will have a new screen to add a Contribution Group. This is useful if you have different schemes running.
Click +Add Contribution Group
You can name your group, which is useful if you have more than one scheme. Once everything is correct, save.
Adding an employee to a pension scheme
Once you have set up your pension scheme, you will be able to add your employees to the pension scheme. If you have selected Manage Auto Enrolment within Shape Payroll, when you add your employees to a pay run, the software will automatically assess if they should be in a pension scheme.
To add an employee to the pension scheme, you can select Pension Plan in the drop down menu in Enter payments. For more guidance view How to Pay an Employee.
Writing to your Employee
If you need to assess your employee, you need to send them a letter confirming if they have been enrolled. Letter templates from the Pensions Regulator can be found here.
If you are using a pension provider listed below, they may have suitable templates you can download and use or via their online employers portal.
NEST - Employer Notices Templates
The Peoples Pension - Resource Library
Smart Pensions - Example Emails and Letters
Workers Pensions Trust - Resources
Further guidance on your responsibilities as an employer to provide a pension scheme can be found here at The Pensions Regulator.