Set up pension salary sacrifice in QuickBooks Advanced Payroll

Learn how to set up pension salary sacrifice in Advanced Payroll.

A salary sacrifice scheme lets employees exchange part of their gross salary for non-cash benefits such as pension contributions. This reduces National Insurance (NI) contributions for both employer and employee.

This article is for customers who use QuickBooks Online Advanced Payroll.

Step 1: Set up a pension contribution plan

1. Follow this link to complete the steps in product
2. Select Payroll Settings, then Pension settings.
3. In Contribution Plans, select Add.
4. Enter the Plan Name, Contribution Group ID, and Pension Type.
5. Choose whether the plan is auto-enrolment:
   • Yes for standard schemes without qualifying earnings.
   • No for schemes based on qualifying earnings.
6. If using qualifying earnings (non-auto enrolment):
   • Enter Lower and Upper Earnings.
   • Select LEL Offset and UET Offset.
7. Enter the contribution details:
   • Employee Contribution: 0%
   • Salary Sacrifice %
   • Employer Contribution % (usually 3%)
   • NIC Rebate %
8. For auto-enrolment schemes, tick Calculate pension on qualifying earnings if applicable.
9. Select Save.

Step 2: Assign the plan to employees

• Assign the plan to the relevant employee(s).
• Set their assessment status to Eligible Job Holder.

QuickBooks will then calculate pension contributions automatically.

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