Hi Michelle,

Thanks for using Community Hub.

Much depends on how you want the AVC to work.

AVCs don't adhere to auto enrolment so so if the pension scheme uses qualifying earnings they are ignored. 

Do you want the AVCs to work as salary sacrifice?  They don't by default, they calculate pre tax but post National Insurance.

If you can advise how you would like to apply them then we can advise how to achieve this in the software. Feel free to reply to this post with more information so we can take a look, or reach out to Sage 50 Payroll support so they can look at it for you: Sage 50 Payroll Support >

Regards,

Andy
Sage UKI

I have the same issue. AVC application is not salary sacrificed when applied. I have had to do this:

1. Set up a second pension scheme (Company>Pension Schemes) as salary sacrifice called it "Employee AVC"
2. Set the amounts as FIXED for Employee at £1 and FIXED for Employer at zero
3. For this employee, go to Pensions>Manage schemes and only use the "Employee contributions box" for employee AVC amounts (you can change this to % if needed)

Sage, hope you find a better solution to this. Our employees are given a contractual agreement for their AVC so we should be able to deduct this as salary sacrifice as an option.

Hi Sharon, thanks for your post. I'd certainly recommend adding the to the product Ideas Board so it can be considered for future development.

Andy
Sage UKI