Loader

Earnings for Assessment & Contributions

What earnings do I use for Workforce Assessment?

 

When you have determined which employees need to be assessed, you must ensure to use the correct Qualifying Earnings to determine the worker category of each individual.

 

The correct definition that pay employers must use to assess a job' is known as ‘Total Gross Qualifying Earnings’ (TGQE). TGQE typically includes all types of a workers pay specified in the Pensions Act of 2008, without applying the Upper and Lower Earnings Thresholds for auto enrolment.

 

Note: The law specifies that an employer must calculate contributions on salary, wages, commission, bonuses, overtime, statutory sick pay, statutory maternity pay, ordinary/additional statutory paternity pay as well as statutory adoption pay. Please note that there may be other components, often requiring subjective professional considerations before the inclusion / exclusion from QE.

 

 

 

What earnings do I use for calculating pension contributions from payroll?

(Pensionable Earnings)

 

Pensionable Earnings is the pre-defined components of employee pay that is used to calculate pension contributions. The SuperTrust allows you to choose from the following list of definitions:

 

Qualifying Earnings (with AE bandings)

These earnings include all elements of a worker's pay as defined under the Pensions Act 2008, after applying the Upper and Lower Earnings Thresholds for auto enrolment.

Note: The law specifies that an employer must calculate contributions on salary, wages, commission, bonuses, overtime, statutory sick pay, statutory maternity pay, ordinary/additional statutory paternity pay, as well as statutory adoption pay. Please note that there may be other components, often requiring subjective professional considerations before the inclusion / exclusion from QE.

 

Certification SET 1

These earnings are at least equal to basic pay, such as Salary, Wages, Overtime, SMP, SPP and SSP.

This definition requires the employer to complete Self-Certification, so we strongly recommend that employers' investigate this topic before continuing.

 

Certification SET 2

These earnings must include basic pay, in addition to other elements of pay, providing the pensionable earnings make up at least 85% of total earnings.

This definition requires the employer to complete Self-Certification, so we strongly recommend that employers investigate this topic before continuing.

 

Certification SET 3

These earnings require contributions to be calculate on total earnings.

This definition may require the employer to complete Self-Certification, so we strongly recommend employers to investigate this topic before continuing.

 

Warning

You must ensure that the Pensionable Earnings within your payroll software, matches your chosen definition.

Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. SuperTrust UK Master Trust is regulated by the Pensions Regulator (PSR Number: 10274116) as a provider of workplace pension schemes. All investments of the pension scheme are regulated by the Financial Conduct Authority (FCA). The trustees understand that based on correspondence with the FCA, scheme members have access to compensation under the rules of the Financial Services Compensation Scheme (FSCS) in the event of the insolvency or default by our investment providers.

©Supertrust UK Pensions Trustees Limited

Website by Raid-10

 

 

What earnings do I use for calculating pension contributions from payroll?

(Pensionable Earnings)

 

Pensionable Earnings is the pre-defined components of employee pay that is used to calculate pension contributions. The SuperTrust allows you to choose from the following list of definitions:

 

Qualifying Earnings (with AE bandings)

These earnings include all elements of a worker's pay as defined under the Pensions Act 2008, after applying the Upper and Lower Earnings Thresholds for auto enrolment.

Note: The law specifies that an employer must calculate contributions on salary, wages, commission, bonuses, overtime, statutory sick pay, statutory maternity pay, ordinary/additional statutory paternity pay, as well as statutory adoption pay. Please note that there may be other components, often requiring subjective professional considerations before the inclusion / exclusion from QE.

 

Certification SET 1

These earnings are at least equal to basic pay, such as Salary, Wages, Overtime, SMP, SPP and SSP.

This definition requires the employer to complete Self-Certification, so we strongly recommend that employers' investigate this topic before continuing.

 

Certification SET 2

These earnings must include basic pay, in addition to other elements of pay, providing the pensionable earnings make up at least 85% of total earnings.

This definition requires the employer to complete Self-Certification, so we strongly recommend that employers investigate this topic before continuing.

 

Certification SET 3

These earnings require contributions to be calculate on total earnings.

This definition may require the employer to complete Self-Certification, so we strongly recommend employers to investigate this topic before continuing.

 

Warning

You must ensure that the Pensionable Earnings within your payroll software, matches your chosen definition.

 

Information provided on the site is merely guidance that may change in line with UK law and regulations. Users must not consider this to be financial advice or their sole resource when making any financial decision. SuperTrust UK Master Trust is regulated by the Pensions Regulator (PSR Number: 10274116) as a provider of workplace pension schemes. All investments of the pension scheme are regulated by the Financial Conduct Authority (FCA). The trustees understand that based on correspondence with the FCA, scheme members have access to compensation under the rules of the Financial Services Compensation Scheme (FSCS) in the event of the insolvency or default by our investment providers.

©Supertrust UK Pensions Trustees Limited

Website by Raid-10