You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register
Get Started with Redwood for Oracle Cloud HCM   Begin Now
To ensure that questions get required attention from community members and are NOT left unanswered, it’s important for the author to indicate (by selecting “Yes” or “No” when prompted) whether the question was answered. (newly added) Please note that it is also important to respond to EACH comment your question receives. Your Yes or No response ensures an accurate status for your question.

For more information, please refer to this announcement explaining best practices for getting answers to questions.

UK Pension- Qualifying Earnings Threshold not factored while determining Pension Calculation

edited Sep 11, 2024 8:19PM in Payroll and Global Payroll Interface (GPI) 1 comment

Summary:

We have a business scenario where an employee earns 30000 GBP Annually and employee is paid on a Monthly basis. The qualifying earnings threshold is 6240 Annually. Assuming the Percentage of EE contribution is 4%, then the expected EE pension contribution by client is .

Annual Salary:30000

Pensionable earnings:30000

Pensions Automatic Enrolment Assessable Earnings:30000

LEL threshold:6240

EE Contribution:4%

EE Contribution Amount:((30000-6240)/12)*0.04=79.20

However the System computes on the entire pensionable earnings without excluding the LEL Threshold which in the above example is (30000/12)*0.04=100

Can someone please suggest how this LEL is factored in calculation?

Content (please ensure you mask any confidential information):


Version (include the version you are using, if applicable):

Tagged:

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!