I previously raised a case regarding salary sacrifice pension, when i tested salary sacrifice pension i noticed that it does not reduce gross pay but it should reduced gross pay, if salary is £3000 and salary sacrifice is £250, gross, NI'able and Taxable pay should all be £2750 but gross still shows as £3000, which is incorrect. I was also told that gross pay is used to calculate statutory figures, which is also incorrect, it should be NI'able pay. Can you please fix this.
Describe the Challenge | Processing pay correctly |
Also noticed this with salary sacrifice pension.
What makes it peculiar is that childcare vouchers (a salary sacrifice) do get deducted from the 'gross pay' number, but the salary sacrifice pension does not.
Both are deducted from 'taxable pay'.
Hi Keira, the gross pay will still be £3,000 - it is the taxable pay that will reduce with salary sacrifice deductions