I am confused a little, I need to 'add' salary sacrifice to an employees salary this month. From the drop down under 'Pay' tab I select 'Salary Sacrifice Pension' and input £500
When I click 'Calculate' the £500 gets added to the gross of the salary and the employee gets to take home more money! And ends up paying more PAYE/NI.
Have I misunderstood what is happening? as I thought it would be £500 off the gross and therefore for this month the employee would earn less and therefore pay less PAYE/NI?