Workplace pensions

Hi i'm new to all this!  We have just reached our staging date for our workplace pensions.  We have decided to take deductions off our employees basic pay only and not overtime and any extras which I have set up with the new pension scheme in Sage.  However when I have checked the figures they are all wrong and not 1% for employees contributions and 2% for employers contributions of their basic wage.  Can anyone explain why and where I have gone wrong please?

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    Hi Steve,

    There are several reasons why the deduction may not be exactly matching the 1 and 2% figures you expected.

    Could you let me know which pay frequency your employees are on please? A common query with monthly paid employees on their first payroll after their staging dates is that the amounts deducted look a little higher than expected. This is due to a one off pro rated amount which is to account for the time period of the 1st of the month to the 5th (prior to the current tax month).

    Another reason could be the pension is post tax so the employee deduction will have been reduced by 20% as this amount is claimed on their behalf by the pension provider.

    Finally if you have decided to deduct the pension from only their basic pay this must have been reflected within the pay element settings within the software, and also please check if you have ticked to use 'Qualifying Earnings' in this section too. This will follow the guidelines advised by TPR on the minimum amount an employer must contribute.

    If none of these resolve the discrepancy please let us know?