Correcting Payroll Errors: Fixing Sage & Next Pension Mismatch

Introduction

Even a tiny configuration error can lead to compliance risks, payroll miscalculations, and incorrect contributions when setting up payroll and pensions. A newly established company unknowingly faced such an issue. Fortunately, Corient’s expertise in payroll processing helped identify and resolve the problem before it could disrupt operations.

The Initial Problem: What Went Wrong?

During our quality check on the Sage backup, we uncovered two significant issues:

1. The pension scheme in Sage was incorrectly set to “No Qualifying Earnings,” whereas the Next Pension portal had “Qualifying Earnings” selected.
2. Instead of allowing Sage to handle pension deductions automatically, the client manually deducted contributions from employee pay.

If not fixed immediately, these discrepancies could have caused payroll errors, compliance issues, and incorrect pension contributions.

Corient’s First Solution: The Fix

Our priority was to eliminate the manual pension deduction process by:

• Configuring Sage to automate pension deductions, ensuring accuracy and consistency.
• Reducing the risk of human error while making payroll processing faster and more reliable.

While this resolved one issue, the qualifying earnings mismatch between Sage and the pension portal required further action.

The New Problem: A Surprise Roadblock

The client was unaware of the issue when we explained the discrepancy between Sage and Next Pension. They weren’t sure which system should be adjusted and left the decision to us, trusting our expertise.

Corient’s Second Solution: Fixing the New Problem

Step 1: Analysing the Impact

We reviewed Sage and Next Pension’s configurations to determine which needed adjustment.

Step 2: Compliance Review

We cross-checked pension compliance regulations to ensure that any changes we made aligned with best practices and legal requirements.

Step 3: Implementing the Fix

Based on our assessment, we updated the pension settings to ensure Sage and Next Pension were aligned, preventing future errors.

Step 4: Client Communication & Training

After implementing the changes, we provided the client with a clear explanation of the updates and how these improvements would streamline their payroll process.

The Final Outcome: A Success Story

With Corient’s expertise in payroll outsourcing, Companies pension setup was successfully corrected, leading to the following:

✅ Automated pension deductions, eliminating manual errors.
✅ Alignment between Sage and Next Pension, preventing compliance risks.
✅ A seamless payroll process, saving time and effort for the client.

What the Client Said

“We had no idea our pension setup had errors, but Corient caught the issue before it caused major problems. Their proactive approach, attention to detail, and expertise in Sage gave us a smooth payroll system. We now have peace of mind knowing everything is set up correctly!”

Key Takeaways: Why This Matters for Businesses

• Regular Payroll Checks Prevent Costly Mistakes – A thorough quality check ensures all settings align with compliance standards.
• Automation Enhances Accuracy – Automating pension deductions removes human error and ensures consistency.
• Expert Guidance Simplifies Payroll – A knowledgeable partner like Corient can eliminate payroll complexities and ensure everything runs smoothly.

At Corient, we specialise in accounting and payroll solutions to help businesses streamline operations, reduce risks, and stay compliant. Let us handle the details so you can focus on growing your business!