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Work Place Pension Costs - How It Works
Work Place Pension Costs - How It Works

1 Minute Read - We automatically apply Employers Work Place Pension Contribution to ensure we deliver the most accurate rota costs.

Ciaran avatar
Written by Ciaran
Updated over a week ago

Our intuitive rota software now includes automatic calculations for your Employers Contribution of the UK Work Place Pensions.

We include Employers Work Place Pension Contribution's to ensure your projected weekly rota costs reflect as accurately as possible your expected gross payroll costs enabling you to plan rotas to manage and control these costs .

How it works

Our software automatically applies the appropriate Work Place Pension costs for both hourly paid and salaried staff.

Where an employee is aged 22 years or over and their gross weekly earnings exceeds £120, our software will automatically apply a 3% cost on their earnings over £120.

A Simple Example

Where an employees gross earnings is £300 (30 Hours x £10 per hour) the gross payroll cost to the business is £322.65 once the employers contribution for WPP and NIC are added.

Employers WPP Contribution

First £120 has £0 WPP applied

Employers WPP Contribution = £180 x 3% = £5.40

Employers NIC

First £175 has £0 NIC applied
Remaining £125 has 13.8% NIC applied = £17.25

How Do You Know If My Employee is Over 22 ?

You can now add the Date of Birth for each employee by editing your employees details. The system will automatically apply employers WPP contribution for all employees whose age is over 22 years.

What if I Can't Provide Employee Dates of Birth

If you choose not to add employee's dates of births the system will assume employees are over 22 years of age and apply an employers WPP contribution.

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