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Luisa_G
Level 2

Employer NI contribution and workplace pension

Hi,

I am using QB advanced payroll and the Employer NI contributions are calculated without taking into account the employer 3% contribution to the workplace pension. Can anybody advise what setting should be changed to ensure we get this deduction? Thanks 

Solved
Best answer January 18, 2024

Accepted Solutions
paul72
Level 8

Employer NI contribution and workplace pension

Hi @Luisa_G 

I don't use QBO Payroll but pension contributions do not ordinarily attract NIC relief (employer or employee) - so, from what you're describing, QBO Payroll is correct.

 

It is possible (though more complicated) to run your pension scheme in conjunction with a salary sacrifice arrangement - this would attract NIC relief if done correctly & is possibly what you're thinking of.

 

Hope this helps.

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6 REPLIES 6
Ashleigh1
QuickBooks Team

Employer NI contribution and workplace pension

Hello Luisa_G, thanks for posting on the Community page, you need to check the pay category. So if you click on payroll>payroll settings>under pay run settings- pay categories> click on the pay category for example salary> and make sure both of these are ticked as they need to be, Employee pensionable and Employer pensionable and you will also need to check the pension settings you can check it from the payroll > payroll settings>pension settings under business settings column and click the pension scheme to check the setup.  You can also check the employee settings too.

Luisa_G
Level 2

Employer NI contribution and workplace pension

Hi Ashleigh1,

Thank you for your feedback.

I have checked all the payroll settings and they seems to be set-up correctly.

Nonetheless, the Employer pension contribution is not deducted from the Employer NI contributions.

Any other suggestion? Because of this we are paying more Employer NI than what is due.

Thanks 

Clark_B
QuickBooks Team

Employer NI contribution and workplace pension

Hi there, @Luisa_G.

 

Let me chime in and provide information about pension contributions that are not deducted from the Employer NI contributions in QuickBooks Online (QBO).

 

Since the payroll settings and setup are correct, I suggest checking the employee's year-to-date to see if they were over-deducted in the previous payroll for NI contributions, which may be why it wasn't deducted now.

 

If it has been confirmed, I recommend contacting our support team for further assistance or verification.

 

Here's how:

  1. Go to Help.
  2. Select the Search tab, then choose Contact Us.
  3. Type in your issue or concern in the field.
  4. Hit Continue.
  5. Click the Chat or Callback option.

 

You can contact us from Mondays to Fridays, 6 AM to 6 PM PT, and Saturdays, 6 AM to 3 PM PT.

 

For more detailed steps, please refer to this article: QuickBooks Online Support.

 

For future reference, I'll also add this article to guide you in running a report: Run reports in QuickBooks Online.

 

Please feel free to drop a comment below, if you have further concerns about payroll, pension contributions, or other QBO-related concerns. I will answer them in any possible way.

Luisa_G
Level 2

Employer NI contribution and workplace pension

HI,

Thank you for your feedback. 

It is our first year using QB Advanced Payroll and the Employer monthly pension contribution should be deducted each month from the Employer NI relevant earnings before the Employer NI contribution is calculated.

I will contact the support team

Thanks 

 

paul72
Level 8

Employer NI contribution and workplace pension

Hi @Luisa_G 

I don't use QBO Payroll but pension contributions do not ordinarily attract NIC relief (employer or employee) - so, from what you're describing, QBO Payroll is correct.

 

It is possible (though more complicated) to run your pension scheme in conjunction with a salary sacrifice arrangement - this would attract NIC relief if done correctly & is possibly what you're thinking of.

 

Hope this helps.

Luisa_G
Level 2

Employer NI contribution and workplace pension

Hi,

Yes, you are correct.

I got confused as I have to look into setting up a salary sacrifice arrangement for one employee.

Thank you!

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