When FastTrack360 determines if a payee should be enrolled into a pension scheme, it will automatically allocate a pension provider/scheme based on the default setting in the pay company. In doing so, it also needs to calculate the deduction as well as the employer contributions. This means the percentage amounts needs to be defined. When configuring the system for pension automatic enrolment, the payee deduction needs to have the percentage defined in the deduction header record using the default rate functionality. The pension deduction does not get assigned to the payee: the pension provider/scheme is assigned to the payee and the system generates the deduction in the pay batch automatically.
To configure the Deduction Header, please refer to How to Create a New Deduction Header which also includes the configuration of the default rate.
Pensionable Pay
Your pension scheme defines the elements of pay on which the pension contributions are based on. Depending on those, there are 2 ways to define the pensionable pay:
In the Deduction Header, you can set the Calculate On to Gross. If just applying that setting, this will use all pay elements except those that are of Reimbursement type. Be aware that you could be paying an element of pay under the other pay code types that are not a pensionable item e.g. a car allowance and so consider if this is the correct choice.
In the Deduction Header, you can set the Calculate On to Gross and Pay Code Group. This defines the group of pay codes on which the pension should be based. Be aware that if you create any new pay codes, you will need to consider if this should be added into the pay code group that you use for determining the pensionable pay.