Lower Earnings Limit threshold - how to record in UK Cloud Payroll?
SummaryLower Earnings Limit threshold - how to record in UK Cloud Payroll?
At Macdonald Hotels we are nearing the Live launch of Cloud Payroll (the deadline is 12th April 2018).
However there is some confusion around the pension employees contribution and how it is calculated:
When the ees contribution is calculated does the calculator consider the lower earnings threshold?
If so, where is the lower earnings threshold stored/maintained?
The expected results (where an employee contributes 1%) is that gross salary x 1% (after tax) less LEL £490 (for monthly paid) multiplied by 80%. The pension provider then claims back the 20% saving on behalf of the employer.