NEST pension guide

Updated 17 hours ago 3 min read

Overview

ABBPay calculates NEST contributions in every pay run and gives you the files to upload to the NEST employer portal. You set up the scheme and groups once, enrol employees, and export after each pay run.

This guide is for UK employers using NEST.

Before you start

  • You have access to Payroll > Pensions.
  • You have your NEST employer ID and the scheme's account name.

Setting up the scheme

  1. Go to Payroll > Pensions > Pension Schemes > Add Scheme and choose NEST.
  2. Enter your NEST employer ID and account name.
  3. Save the scheme.

Pension groups

Create one or more groups. Each sets a percentage or fixed deduction, a contribution type (for example net pay arrangement or relief at source), employee and employer rates, the earnings basis and the payment day. You can link each group to the matching NEST group. See Pension providers overview for every option.

Assessing and enrolling employees

ABBPay assesses employees every morning and enrols eligible jobholders into your default group. You can also use an employee's Pension tab to Auto Enrol, Postpone, Offer Opt-In, Offer to Join, Re-enrol or Opt Out. Postponement notices and re-enrolment tracking are covered in the overview.

Remember to add each employee in the NEST portal as well, since ABBPay does not send members to NEST for you.

How contributions are calculated

Contributions follow the group's rules and tax treatment. Each pay run checks the statutory minimum (8% in total, 3% from the employer, on banded qualifying earnings) and flags any shortfall.

After each pay run

  1. Complete the pay run.
  2. Open the pay run's Pension Contributions page and check the employee and employer totals.
  3. Export the contribution file as CSV or Excel. The pay run edit screen also offers a NEST CSV.
  4. Upload it in the NEST portal.
  5. Record the payment against the scheme with a reference.

You can also use the NEST pension export manager to export one group at a time, which is the safest way to get the NEST layout. Check the columns in the first file you export against NEST's upload requirements.

Opt-outs and leavers

Opt-outs are recorded in ABBPay only, so tell NEST through its portal too. Use Opt Out or the leaver process on the employee's Pension tab so contributions stop.

Tips and FAQ

Does ABBPay send contributions to NEST automatically? No. NEST uses file export.

Which export should I use? Export per group for NEST's layout, and check the first file against the NEST portal.

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