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Configuring Jarvis workplace pensions in Xero Payroll

Updated today

Purpose

This guide provides step-by-step instructions for configuring Jarvis as a workplace pension provider in Xero Payroll, including employer credentials, contribution rates, and Relief at Source tax configuration.

Pre-Requisites

Before starting, gather:

  1. Jarvis Employer ID (format: JRVEMPxxxxxx)

  2. Auto Enrolment Staging/Duties Date

  3. Default contribution rates (employer % and employee %)

  4. Pensionable pay definition (statutory band or alternative)

Configuration Steps

Access Pension Settings

  1. Navigate to: Payroll Menu → Payroll Settings → Workplace Pensions

  2. Click Add Workplace Pension

Xero will present a six-step configuration wizard.

Step 1: Enrolment Dates

  1. Enter Auto Enrolment Staging/Duties Date

  2. Select postponement status (Yes/No)

  3. Enter next re-enrolment date (optional)

Step 2: Provider Selection

  1. Search field: Type 'Jarvis'

  2. Select Set up manually

Step 3: Employer Identification

  1. Enter Employer ID from Jarvis portal (JRVEMPxxxxxx)

Step 4: Contribution Rates

  1. Enter employer contribution percentage

  2. Enter employee contribution percentage

Step 5: Qualifying Earnings

Define pensionable pay calculation:

  • Yes = Statutory qualifying earnings band (£6,240 to £50,270)

  • No = Alternative definition (e.g., basic pay, total pay)

Step 6: Tax Relief Method

Select based on your pension arrangement:

Option A: Salary Sacrifice

  • All contributions paid as employer contributions

  • Employee salary reduced by contribution amount

  • Both contributions deducted pre-tax

Option B: Relief at Source (Jarvis standard method)

  • Employee contributions deducted from post-tax pay

  • Set "Reduce by Basic Rate Tax" = Yes

  • Jarvis claims 20% basic rate tax relief from HMRC

  • Employee pays 80% of stated contribution; HMRC adds remaining 20%

CRITICAL CONFIGURATION

Jarvis uses Relief at Source, NOT Net Pay arrangement. Employee contributions must be deducted AFTER tax calculation. Setting "Reduce by Basic Rate Tax" to Yes is mandatory.

Post-Configuration Verification

Verify these settings before processing first payroll:

  1. Employer ID matches Jarvis portal reference

  2. "Reduce by Basic Rate Tax" is set to Yes (if using Relief at Source)

  3. Contribution percentages match scheme agreement

  4. Test with sample employee to confirm deductions calculate correctly

Support

For configuration assistance:

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