Taking the complexity out of payroll processes
Payroll and pensions support from seasoned experts
Payroll and pensions come with a host of important responsibilities. From auto-enrolment to compliance, there’s a lot to get right, for your business and the people who rely on you. With most UK employees depending on workplace pensions for retirement, clarity and accuracy really matter.
We work closely with businesses to take the stress out of payroll and pension management, freeing you up to focus on what matters most. Whether you're setting up workplace pensions for the first time or considering a change, get in touch to see how we can take care of the legwork.
The link between payroll and pensions
Payroll and pensions are directly connected. Every time you run payroll, you’re also calculating and processing pension contributions. Pension figures are based on employee earnings, then, handled through payroll systems and reported to your pension provider to meet legal obligations. That makes payroll a central part of your responsibilities under workplace pension regulations.
As part of payroll, pension management typically includes:
Updating records: Keeping employee details accurate and current. This includes salary changes, new starters, opt-ins, opt-outs, and leavers, to ensure the correct pension contributions are made.
Handling tax implications: Managing tax relief and contribution limits correctly, especially under schemes like relief at source or net pay arrangements.
Ensuring compliance with regulations: Meeting your legal duties under auto-enrolment and The Pensions Regulator, including re-enrolment, record-keeping, and communications to staff.
Types of pensions
As an employer, it helps to understand the different types of pensions your team might rely on. While you're only responsible for workplace pensions, knowing how they fit alongside other types gives you and your staff a clearer picture of retirement planning.
Workplace Pension
This is the one you're responsible for. You set it up, enrol eligible staff, and make contributions alongside theirs. The government usually adds tax relief too. Contributions come straight out of payroll, and you're legally required to stay on top of things like enrolment, opt-outs, and re-enrolment. It’s a key part of your duties, and a big part of what your employees are counting on.
State Pension
This one’s provided by the government and has nothing to do with payroll, but it’s good to know how it works, especially when staff ask questions or expect you to know the basics. Employees qualify based on their National Insurance record, not their workplace scheme. The State Pension offers a basic income in retirement, but most people will need more to live comfortably.
Personal Pension
Some employees may also set up a personal pension themselves, especially if they’re saving extra or working for themselves. You don’t manage this, but it's worth being aware of, as staff may ask about it or want advice. Personal pensions are self-managed, with contributions and investments handled directly through a provider.
Defined contribution & defined benefit pensions
There are two main types of pension schemes businesses need to understand and manage carefully: Defined Contribution (DC) and Defined Benefit (DB) pensions.
A Defined Contribution (DC) scheme means both the employer and employee pay into a pension pot, with the final value depending on how much is contributed and how well the investments perform over time. There’s no guaranteed payout, the retirement outcome varies. Businesses must manage contributions accurately, apply the correct tax relief rules, and ensure payroll integrates smoothly with pension providers. Even small errors can result in underpayments or compliance issues.
A Defined Benefit (DB) scheme, on the other hand, promises a set level of income in retirement, usually based on an employee’s salary and length of service. The financial risk lies entirely with the employer, who must fund these guaranteed benefits. Managing a DB scheme requires precise actuarial planning and consistent payroll accuracy. Mistakes can lead to significant liabilities and increased scrutiny from regulators.
Legal compliance for employers
Managing payroll and pensions in-house means taking on a set of legal responsibilities that go well beyond processing payments. These duties are ongoing, detailed, and tightly regulated, and the legal consequences of getting them wrong can be serious.
As an employer, you're responsible for:
Automatically enrolling eligible employees into a workplace pension
Making the correct minimum contributions
Re-enrolling eligible staff every three years
Issuing legally required communications
Keeping detailed and accurate records
Reporting to your pension provider and The Pensions Regulator
Each of these tasks involves precision, time, and up-to-date knowledge of changing rules. For many businesses, it’s a lot to manage, especially when payroll isn’t your core focus. The challenge of compliance grows with every pay run, and without the right support, it’s easy to fall behind or miss something important.
Trust in our pension management services
If payroll and pension tasks are starting to feel like more than your team can (or should) handle alone, you're not the only one. Many businesses reach a point where the admin, the rules, and the risk all start to pile up, and that's where we come in.
At Payroll Solution Services, payroll and pensions are what we specialise in. Our team has years of experience managing the full process end-to-end, from enrolment and contributions to compliance and reporting.
We act as a partner. Working with us means:
✔ Saving time across your team
✔ Avoiding the cost of hiring internal payroll staff
✔ Getting expert input and up-to-date compliance support
✔ Reducing risk with accurate and reliable processes
✔ Having a go-to partner you can rely on, every pay cycle
Payroll and pension solutions for every business type
Whether you're running a large organisation, managing multiple clients, or operating in a specialist sector, we’ve built flexible payroll solutions to match. Our services are designed to fit your needs, with the tools, account managers, and expertise to keep things running right.
Fully Managed Large Enterprise Payroll
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Comprehensive payroll and pension management
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Tax filing and compliance
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Direct deposit and payment options
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Year-end reporting
Payroll Bureau Services
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Efficient payroll processing
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Flexible service options
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Data integration
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Support and training
Construction Industry Scheme
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Specialised payroll services
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CIS deductions and reporting
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Verification and validation
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Detailed statements
Take the stress out of payroll and pensions
Let us handle the admin, compliance, and calculations, so you can focus on your business. With Payroll Solution Services, you’ll have a trusted partner who gets payroll and pensions right, from start to finish.