How will a 4-4-5 payroll affect my contribution schedules?

If you’re aligning your 4-4-5 workers to a group with calendar month earnings period, there’ll normally be one pay day in each of these calendar months. But occasionally you could get:

• two pay days in a calendar month
• a calendar month that contains no pay day.

For these two scenarios you should tell us the actual pensionable earnings paid to the worker during the calendar month and calculate contributions based on that.

When you set up workers with a monthly frequency you’ll need to submit a contribution schedule for each pay period. Any contributions in a pay period will need to be submitted in a contribution schedule.

This means contributions may sometimes be zero and sometimes be roughly twice the normal amount. The worker will remain a member of Nest, they just won’t have contributions for the pay period where there isn’t a pay run. You’ll need to submit a zero contribution schedule for the workers and enter the reason ‘Member has insufficient earnings’ for non-payment. For more information please see How do I tell Nest there are no contributions to pay for a worker this pay period? or How do I mark a member as having insufficient earnings using file upload or file transfer?

The following table shows how contributions need to be sent if there’s one pay day in a pay period, multiple pay days or no pay days.