Personal Pensions

If the company does not offer a Stakeholder/ Pension scheme the employee can pay in to a person pension themselves. The employer can deduction the pension amount from the employee and pay it to the pension company on their behalf

With a personal pension the employee would pay regular monthly amounts or a lump sum to the pension provider who will invest it on their behalf. The fund is usually run by financial organisations such as building societies, banks, insurance companies or unit trusts.

Personal pensions may be suitable for:

• people who are self-employed
• people who are not working but can afford to pay for a pension
• employees whose employer does not offer a company pension scheme
• employees who have the option to pay into a company pension, but choose not to
• employees on a moderate income who wish to top up the money they would get from a company pension

A personal pension may not be the best choice if:

• The employer offers a company pension scheme 
• The employer offers access to a stakeholder pension scheme, with an employer contribution

Setting up a Personal Pension on Bright Pay

To access this utility click “Employer”

1)     Click Add Pension Scheme
         Enter the Name of the policy, (the company that is providing the Personal pension, enter the reference number
         provide by the pension company. 

2)     Choose Type of Pension
         From the dropdown, select Personal pension as your pension type.

3)     Reduction
         Where applicable, tick the box to reduce the amount contributed to the personal pension by the basic tax rate.
         The pension company will increase the amount contributed to the pension scheme by the basic tax rate.

4)    Enter Contact information
        Click the Contact and Payment tab. Enter the Contact information of the Personal pension provider.

5)     Enter Payment information
         Chose from the dropdown how you will be paying over the pensions to the Personal provider.
         If you are paying by credit transfer enter your Pension Companies account details in the box provided.
         You will be able to create a BACS files to send to your bank to automatically transfer the pension fund.

Click Save

Applying the Pension Scheme to your Employees

To apply a pension to your employee Go to Payroll > Double click Employee

ENTER A PENSION DEDUCTION BY AMOUNT

1)    Under Deductions click Add icon

2)    Select Pensions as the deduction.

3)    From the Drop down, select the Personal Pension scheme type which has been previously set up.

4)    Enter amount for employee's contribution in the box provided

5)    Enter amount for employer's contribution in the box provided

6)    The total amount entered will be deducted from the employees weekly, fortnightly or monthly Net pay as appropriate.

ENTER A PERCENTAGE PENSION
 

1)    Under Deductions click Add icon

2)    Select Pensions as the deduction.

3)    From the Drop down, select the Personal Pension scheme type which has been previously set up.

4)    Enter amount for employee's contribution in the box provided

5)    Enter amount for employer's contribution in the box provided

6)    The total amount entered will be deducted from the employees weekly, fortnightly or monthly gross pay as appropriate.

7)    To apply a percentage basis click the drop down (beside the amount) and select %

8)    Enter the % amount in the Box provided.

Pay Personal Pension to the Pension Provider

To access this utility (once payroll has been finalised) go to Payroll > Pay Pensions

1)    This report will show the breakdown of the Pension payments to be paid to your pension company.

2)    To print this report click Print

3)    To export the Pensions report click Export (the report can be copied to excel, CSV, XPS or copied to clipboard.)

4)    You can select to print or view the Pensions report for all, some on one employee, select which employees you
       want to run the report for on the right hand side.

Create a BACS File/ Bank Payment File

A Bank payment file can be created to send to your bank by clicking the Create BACS File button.