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How will the remaining contributions be calculated once I have notified NEST of insolvency?

The total outstanding contribution amount includes both employer and member contributions due through payroll. If you’ve notified us that the insolvency is non-terminal we’ll calculate the amount due up until the date provided.

For terminal insolvency, if there are submitted schedules where you’ve provided contribution data we’ll calculate the outstanding contributions based on the data you’ve provided. If there aren’t any submitted contribution schedules then we’ll calculate the outstanding contributions based on the last paid schedule. If there are no previously paid schedules, the earnings and contributions will be calculated as zero, and outstanding contributions percentage rates will be based on specific percentage rates for the member’s group. If you have any partial earning periods, we’ll calculate the outstanding contributions proportionally.

For example, if your insolvency date is 15 March 2015 and you’ve agreed schedules for the pay periods from September to December 2014, but haven’t completed schedules from January to March 2015 then we’ll calculate total outstanding contributions for the pay periods from September 2014 to March 2015. We’ll calculate contributions for the schedules you’ve haven’t submitted for payment, which would be from January to March 2015, based on the last paid schedule. If there is no last paid schedule or contribution amounts available, then we’ll calculate the contributions for the period from January to March 2015 as zero.

If you made an increase through a contribution correction this will be included in the total outstanding payment. If you’ve made a contribution correction resulting in a decrease we won’t issue a refund. Any in-transit refund to be paid after we've marked you insolvency notified won’t be automatically paid out. Instead we’d use this money to pay for the total outstanding amount. This would only happen if the contribution correction was still processing at the time of you notifying us of your organisation’s insolvency. To find out more about contribution corrections, please see How do I correct a schedule I’ve already paid?

Once we’ve calculated your outstanding contributions, we’ll send a message to the insolvency practitioners’ or official receivers’ NEST online mailbox.

If there are any updates or you don’t believe that we’ve calculated the correct outstanding amount please let us know. The Insolvency Practitioner or official receiver will tell us about any amendments that you need to make such as letting us know members have left your organisation or stopped contributions.

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