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Pension contributions display on payslips

The way that salary sacrifice pensions are displayed on the payslip is very confusing for employees. Firstly the employer pension contribution is listed under deductions, but it is not a deduction. While the amount is not included in the total for deductions, this is misleading as fundamentally an employer contribution is not a deduction. Seconding in a salary sacrifice scheme it is important that the employee contribution is treated as a reduction in gross pay, in order to comply with HMRC guidelines. In the Kashflow payslip, the salary sacrifice contribution is not shown as a reduction in gross pay, but instead as a deduction. I am not sure this is then compliant with HMRC. The guidance would suggest the payslip should follow the format in the attached example.

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  • Nov 23 2023
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