Pension Automatic Enrolment Qualifying Earnings

The earnings on which payees are assessed to see if they meet the eligibility criteria for pension automatic enrolment is not necessarily the same as the earnings used to base the pension scheme rules for the pension deduction.  The earnings on which the payee is assessed for pension automatic enrolment are known as the Qualifying Earnings.  Qualifying earnings is a band of earnings (determined by the government each year).  If your earnings are between the lower and upper earnings threshold, then the payee has earned enough to be enrolled into a pension scheme.  Please refer to the Statutory Parameters for Each Tax Year page to view the thresholds for each tax year.

The qualifying earnings are made up of a payee's wages which includes most items except for Reimbursements and Benefits in Kind.  In FastTrack360, all pay code types apart from Reimbursements and allowances will be included automatically as qualifying earnings.  If an allowance should be included as qualifying earnings, there is a checkbox to indicate as such and so should be reviewed if it should be included.  By default, the flag is checked on.  Please refer to Configuring Allowance Pay Codes on how to configure Allowance Pay Codes.