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This article explains how to manage capital-forming benefits with Personio Payroll. You can also read our general article on the topic.

What are capital-forming benefits in Personio Payroll?

In Personio Payroll, you can manage the capital-forming benefit agreements that you have made with your employees. The feature: 

• Validates agreement entries.
• Lists contributions in documents (payslips, payroll accounts, etc.).
• Adds capital-forming information to the capital-forming SEPA file that can be used to transfer contributions via online banking.

The Capital-forming benefits widget, located in the salary tab of the employee profile, gives you an overview of the monthly amount.

Read on to learn how to create and manage an agreement, and where capital-forming benefits are displayed in the payroll. For further context on economics, we recommend our general article on the topic.

Product limitations

The function for storing company pension agreements does not currently support the following cases:

• Capital- forming benefits for retirement provision: This function does not allow the creation of agreements for BAV-like capital-forming benefits for retirement provision.
• Non-monthly contribution schedules: This function currently only covers agreements with monthly contributions. Agreements with non-monthly contributions (for example, an annual or quarterly payment) are not supported. In this case, it is possible to activate the agreement for that contribution month only and to break it for the rest of the year.
• Subsequent changes in the BAV SEPA file: The function currently only covers the contributions deposited in the BAV agreement at the time the accounting is released. Retroactive changes (for example, the correction of a contribution that is too low or too high) are not taken into account in the following month. The system then adjusts to the newly deposited contribution. Any overpayment or underpayment must be settled directly with the employee.

Manage pension scheme (BAV) agreements in the salary tab

An overview of how to manage pension scheme (BAV) agreements

You can add, edit, clear, and terminate company car agreements in your employees' Salary tab. The following table explains what you need to do when you have an event, such as an employee increasing the contribution:

Add a new pension scheme (BAV) agreement

To create a pension scheme (BAV) agreement, follow these steps:

1. Go to the employee profile of the relevant employee and open the Salary tab.
2. Click on Manage in the capital-forming benefits widget.
3. Click on Add agreement.
4. Fill in the data for the cycle, agreement and contribution details. If the contribution should be paid as a SEPA bank transfer, select it under Payment type.
5. Save the agreement.

Terminate a company pension scheme

To terminate an accounting agreement, you need to enter an end date for the agreement. The following options can be used:

• If the end date was entered when the agreement was created, the agreement will expire on the date you enter.
• If the end date has not yet been entered, open the agreement and click on the pencil icon next to the agreement ends, enter the date and confirm your entry. Note that this change is applied retroactively.
• If the end date is changed (for example, to an earlier date), open the agreement, and click on the pencil icon next to Termination date of agreement. Enter the date. Note that this change is applied retroactively.

Edit a company pension agreement

Note
Changes to an existing company car agreement will be applied retroactively from the start of the agreement.

To edit a company pension agreement, follow these steps:

1. Go to the employee profile of the relevant employee and open the Salary tab.
2. Click on Manage in the capital-forming benefits widget.
3. Click on the BAV agreement you wish to change.
4. Click on the options button with the three dots at the top right of the agreement and select Edit/Add details or agreement type.
5. Select the type of change you would like to make:
   1. Add change agreement
   2. Add additional agreement
   3. Edit data
6. Fill in the required fields. The insurance provider is taken from the original agreement for modification and additional agreements.
7. Save your entries. 

To terminate a company pension (BAV) agreement

To delete a company pension agreement, follow these steps:

1. Go to the employee profile of the relevant employee and open the Salary tab.
2. Click on Manage in the capital-forming benefits widget.
3. Click on the BAV agreement you wish to change.
4. In the agreement, click the options button with three dots in the top right corner and select Add break to agreement.
5. Specify the start date and optionally the end date of the interruption and a comment.
6. Confirm your entry. 

Delete a BAV agreement

To delete a company pension agreement, follow these steps:

1. Go to the employee profile of the relevant employee and open the Salary tab.
2. Click on Manage in the capital-forming benefits widget.
3. Click on the BAV agreement you wish to change.
4. In the agreement, click on the options button with the three dots at the top right and select Add pause to agreement or Delete agreement.
5. Confirm this process. 

In payroll

Company pension agreements in payroll accounting and salary accounting

If a company car agreement has been added for an employee, this is also reflected in the payroll. You'll find:

• The People tab: By clicking on the gross amount, you can view the totals for the total contribution and employer's subsidy for all capital-forming agreements under recurring compensation .
• The payslip preview: Check it either in the detail view or in the Documents tab. Here, the components of the company pension scheme agreement are listed individually.

Retrieve SEPA file

The SEPA file in XML format combines company pension and capital-forming contributions and is generated when payroll is approved.  The file contains all contributions for which SEPA transfer was selected as the payment type. Contributions with the payment type direct debit are excluded from the SEPA file.

You can use this file to transfer capital-forming benefits to the insurance provider. The payment information is taken from the data stored in the individual agreements. You can access it under the Documents tab in the Payroll. Note that the amounts in the SEPA file do not take into account subsequent changes.