Log in to review your worker group settings.
Enhanced contribution checks
Regular checks – every time you submit your data.
The basics – here’s how it works
Why we have contribution alerts
Your worker groups outline what contributions you’ve agreed you’ll pay for that group of employees.
We use this information to check the employee data you send us, and let you know if it doesn’t seem correct. The Pensions Regulator (TPR) requires you pay at least the legal minimum contributions, and contribute what’s outlined in your worker groups.
What will the alerts look like?
Watch our video for an example of the alerts you’ll see, and how to avoid them.
Common reasons for receiving alerts
You’ll receive an alert if the contribution values are lower than expected, based on the contribution percentages set out in the worker groups. The main reasons for this could be:
- Your worker group settings and payroll settings don’t match.
Check your contribution percentages and earnings basis are the same in your worker group settings and payroll. - Your employee is in the wrong worker group.
Check your employee is assigned to the correct worker group in your online account and in your payroll. - You’ve provided the wrong pensionable earnings.
Check you’ve provided the correct earnings for the current pay period, not the annual earnings figure, for example. - You’ve made the wrong contributions for family leave.
You should pay the employer contributions based on the employee’s pay before they went on paid family leave. The employee contributions should be based on the pay they’re actually receiving (for example Statutory Maternity Pay).
Frequently asked questions
How will enhanced data checks work if I upload an employee data file?
- For contributions based on qualifying earnings: you calculate the earnings which are pensionable. That’s the amount between the lower and upper qualifying earnings bands, in this payroll period. Most payroll software will do this for you (if you use one).
- For contributions based on other earnings: you supply the earnings which are pensionable in this payroll period, without adjustment.
- When you submit your file, we’ll check the figure in the pensionable earnings column against the percentages and contributions basis in your worker groups.
- If the contributions in your data file are less than expected, we’ll let you know to give you the chance to correct them. It’s important for you to get it right.
How will enhanced data checks work if I manually update pension data?
- We’ll ask you for the gross earnings of your employees.
- For each employee in a qualifying earnings worker group, there’s no need to calculate the lower and upper qualifying earnings bands, we’ll use the gross figure you provide and apply the bands for you.
- We’ll use the percentages and contribution basis you have in your worker groups to work out each employee’s contributions against the figure you’ve put in the ‘Earnings (gross)’ field.
- If contribution values in your data file are less than expected, we’ll let you know to give you the chance to correct them. It’s important for you to get it right.
How do we calculate the contribution values that we expect to see?
To check your employer and employee contributions, we take the pensionable earnings figure for each employee. Then we check the employer and employee contribution amounts are at least the percentages in your worker group.
Let’s take an example worker group, which has:
- 3% employer contributions
- 5% employee contributions and
- 8% total contributions
If an employee has £100 pensionable earnings for this period, we’ll be expecting at least £3 employer contributions and at least £8 in total.
How do I apply the correct employee contribution percentages in my worker group for net pay arrangement or relief at source?
If you think your tax basis is incorrect, let us know so we can change this. Read more about your tax basis.
What are the minimum contribution percentages for the earnings basis I use?
Each earnings basis has its own legal minimum contributions. Contribution percentages need to be at least:
| Earnings basis | Employer contributions | Total |
|---|---|---|
| Qualifying earnings | 3% | 8% |
| Pensionable earnings (basic) | 4% | 9% |
| Pensionable earnings (85%) | 3% | 8% |
| Total earnings | 3% | 7% |
What data should I include under pensionable earnings when someone has opted out?
When someone has opted out and there are no pension contributions, remember to provide a pensionable earnings figure of £0.00.
Why aren’t you checking all my accounts yet?
We’re taking a phased approach to introducing contribution checks. It’s possible you could have some accounts where data is being checked, and others that are yet to be added. We’ll do our best to limit the likelihood of this, where possible.
Can an employer opt out of enhanced contribution checks?
This is an important update and one that benefits both you as the employer and your employees. TPR expects us to help you meet your legal obligations around contributions, meaning it’s not possible to opt-out of contribution checks.
What to do next
If you still need help
Get in touch if you still need help, have questions, or are unsure what to do.