Before You Begin: In some cases, Dayforce uses the word "earnings" to refer to allowances, even when the culture setting is set to English (UK). When referencing those areas in these topics, the word "earnings" might be used to reflect what’s on the screen.
For pension auto-enrolment to function properly, you must take the following steps in setting up payroll:
- Set up the appropriate allowance definitions and ensure that these allowances are used exclusively for the auto-enrolled pension scheme. These definitions are used by the Calculate Payroll background job to run the assessment of your employees.
- Set up a payroll policy that uses the Apply UK Pension Auto Enrolment Rule type. This policy must be configured, or the Calculate Payroll background job won't assess employees.
The topics in this section outline a typical setup for an auto-enrolled pension scheme. The setup includes employee and employer allowances using salary sacrifice and a payroll policy. These examples are only provided as guidance and might not apply to your organization.
Note: Auto-enroled pension schemes usually use allowance definitions with salary sacrifice that behave as deductions. If you need to use a pre-tax or post-tax deduction definition, Dayforce allows for that type of configuration. However, you can't include more than one type of definition for the employee or employer in the payroll policy. If you need multiple types of configurations, only one can be handled inside the auto-enrolment process; the rest must be handled outside of it using other payroll elections.
Click the links below to review these examples: