bonus payment into salary sacrifice

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How do process a Bonus payment for an employee who is already on a Pension Salary Sacrifice and wishes the bonus to be added to her salary sacrifice.

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    verified answer

    Hi,

    Thanks for using Community Hub.

    First make a note of the employer contribution based on their normal pay. Then, in the employee record, Pension section, edit the scheme and change it from a percentage to a fixed amount and enter the bonus contribution plus the bonus amount.

    If that helps, please click Verify Answer.

    Regards,

    Andy
    Sage UKI

  • An employee has the right to submit a written request to the employer with the bank details of their pension scheme for the company to make a direct gross payment of their bonus straight from the company to their pension without it going through payroll for any deductions for tax and NI.  This can be paid direct from the company and recorded via the company accounts rather than payroll.  This is benefits both the employee and the employer in that the employee gets the 20% tax relief applied to the gross pay amount and the employer does not have to pay any employers NI on this extra pay so reducing their liability.  This is called a Bonus salary sacrifice and if you google this or speak to your pension provider with regards to this, then they will be able to advise you further with regards to this.