Salary sacrifice confusion

Mary_Alice

Dec was the first month my employer went to salary sacrifice. Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. It normally shows on my plan on the 10th of the following month.
It was late this month and only went in today . Usually the 2 contributions show as employer and " your Payments" This month it only shows Employer as £200 and nothing else? My payslip shows just a £75 contribution so I am confused. I emailed HR and they confirmed the payment was late but it is correct. But I am paying in less and my "pot" is £135 less than normal. how can this be ???

Marcon

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs? Even if you were paying 8% including the 25% tax uplift you'd get added by the provider in a relief at source scheme (and it sounds as if that's what you are in), the numbers still don't look right.

Mary_Alice

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs? Even if you were paying 8% including the 25% tax uplift you'd get added by the provider in a relief at source scheme (and it sounds as if that's what you are in), the numbers still don't look right.

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs? Even if you were paying 8% including the 25% tax uplift you'd get added by the provider in a relief at source scheme (and it sounds as if that's what you are in), the numbers still don't look right.

Yes that is what I don't understand- My first month in Sept was the basic default so I paid 3% and they paid 5% and the maths was right  then Oct and Nov it was 8% from me and 5% from them but their payment was higher ?? Now its just showing as a flat £200 from employer so I can't work the % out.
I will ask for an online chat so I can share my standard Life statements with HR . I have only been there a few months so don't want to rock the boat, but need some clarification

Marcon

Mary_Alice said:

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs? Even if you were paying 8% including the 25% tax uplift you'd get added by the provider in a relief at source scheme (and it sounds as if that's what you are in), the numbers still don't look right.

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs? Even if you were paying 8% including the 25% tax uplift you'd get added by the provider in a relief at source scheme (and it sounds as if that's what you are in), the numbers still don't look right.

Yes that is what I don't understand- My first month in Sept was the basic default so I paid 3% and they paid 5% and the maths was right  then Oct and Nov it was 8% from me and 5% from them but their payment was higher ?? Now its just showing as a flat £200 from employer so I can't work the % out.
I will ask for an online chat so I can share my standard Life statements with HR . I have only been there a few months so don't want to rock the boat, but need some clarification

What's your (current) monthly gross salary?

squirrelpie

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs?

Unless it showed the net deduction from the pay packet, whilst the 8% refers to the gross contribution in the pension?

Mary_Alice, I'm not clear who you're asking for an online chat with? Nor why you seem to need permission to share your pension details with HR?

But I think you're absolutely right to ask for some clarification; HR should be happy to explain the numbers.

Mary_Alice

squirrelpie said:

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs?

Unless it showed the net deduction from the pay packet, whilst the 8% refers to the gross contribution in the pension?

Mary_Alice, I'm not clear who you're asking for an online chat with? Nor why you seem to need permission to share your pension details with HR?

But I think you're absolutely right to ask for some clarification; HR should be happy to explain the numbers.

squirrelpie said:

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs?

Unless it showed the net deduction from the pay packet, whilst the 8% refers to the gross contribution in the pension?

Mary_Alice, I'm not clear who you're asking for an online chat with? Nor why you seem to need permission to share your pension details with HR?

But I think you're absolutely right to ask for some clarification; HR should be happy to explain the numbers.

Sorry I meant I would do an online chat -teams- with HR so I can share my screen to show (share) what has been paid to Standard life as it doesn't match my payslip. I just wanted to check with people here that it looks wrong before I look foolish

Mary_Alice

Marcon said:

Mary_Alice said:

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs? Even if you were paying 8% including the 25% tax uplift you'd get added by the provider in a relief at source scheme (and it sounds as if that's what you are in), the numbers still don't look right.

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs? Even if you were paying 8% including the 25% tax uplift you'd get added by the provider in a relief at source scheme (and it sounds as if that's what you are in), the numbers still don't look right.

Yes that is what I don't understand- My first month in Sept was the basic default so I paid 3% and they paid 5% and the maths was right  then Oct and Nov it was 8% from me and 5% from them but their payment was higher ?? Now its just showing as a flat £200 from employer so I can't work the % out.
I will ask for an online chat so I can share my standard Life statements with HR . I have only been there a few months so don't want to rock the boat, but need some clarification

What's your (current) monthly gross salary?

Marcon said:

Mary_Alice said:

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs? Even if you were paying 8% including the 25% tax uplift you'd get added by the provider in a relief at source scheme (and it sounds as if that's what you are in), the numbers still don't look right.

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs? Even if you were paying 8% including the 25% tax uplift you'd get added by the provider in a relief at source scheme (and it sounds as if that's what you are in), the numbers still don't look right.

Yes that is what I don't understand- My first month in Sept was the basic default so I paid 3% and they paid 5% and the maths was right  then Oct and Nov it was 8% from me and 5% from them but their payment was higher ?? Now its just showing as a flat £200 from employer so I can't work the % out.
I will ask for an online chat so I can share my standard Life statements with HR . I have only been there a few months so don't want to rock the boat, but need some clarification

What's your (current) monthly gross salary?

£2500 before deduction per month ( £30,000 per year) 

Marcon

squirrelpie said:

Marcon said:

Mary_Alice said:

Before the change I was paying in 8% and they paid 5% so my contribution was £160 and £175 from them. 

The numbers look odd. If you were paying in 8%, that's higher than 5%, so surely your contribution should have been higher than theirs?

Unless it showed the net deduction from the pay packet, whilst the 8% refers to the gross contribution in the pension?

Still doesn't work. As I've said above, even if the 8% included the tax uplift, OP's contribution (ie deduction from pay) would be higher than the employer's 5%. To get to an 8% employee contribution including basic rate tax, the employee's contribution would be 0.8 x 8% = 6.4%.

Marcon

Mary_Alice said:

What's your (current) monthly gross salary?

£2500 before deduction per month ( £30,000 per year) 

So if your employer is paying £200 that's 8%; that is paid gross to the provider, so there is no tax relief added.

If you are then making a personal contribution of £75 on top of what you've sacrificed, that's a 3% deduction from your salary of £2,500; the pension provider will top up your contribution by adding tax relief, meaning you get a total of £75 + £18.75 = £93.75 in your pension pot. That's a total of £293.75, and that is what should show on your Standard Life statements, although tax relief is not always added immediately, so that might to show up just yet.

Is the above what you are expecting/hoping for? If so, it might be worth asking HR if you can salary sacrifice the 3% you are paying personally, to save an extra bit of NI for you and for them.

Alternatively, it could be that your employer is paying 5% and you are paying 3% by salary sacrifice and the £75 deduction shown on your payslip is there purely as an aide memoire - albeit a confusing one! - and you've simply not asked for anything 'extra' to be paid on top of your minimum?

The 'basic default'  under auto enrolment legislation is actually 5% employee (including tax relief) and 3% employer, but maybe your employer's 'default' position is 3% employee/5% employee? Either way, sounds as if there's certainly some confusion in relation to October and November.