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Level 1

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

 
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Best answer April 17, 2020

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QuickBooks Team

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

Hi nvmotors

 

The weekly earnings threshold has increased this tax year to £120/wk and therfore the calculations of £16.80 and £12.60 are correct (540-120 = .420, 420 x 0.04 = 16.80 and 540-120 = 420, 420 x 0.03 = 12.60. f you apply last years threshold, £118/wk, then the calculations should be £16.88 (540-118 = 422, 422 x 0.04 = 16.88 and £12.66 540-118 = 422, 422 x 0.03 = 12.66) .

We presume that you are now running a payrun relating to this financial year?

View solution in original post

9 REPLIES 9
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QuickBooks Team

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

Hi nvmotors

 

What are the gross pay figures being used and we presume that they are the same figures that are being used in the desktop product?

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Level 1

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

Hi John,  yes you are correct the figures are the same as being used in QB Desktop.  The payments should be showing at £16.88  Employee  and £12.66 Employer.  The Gross pay is £540 p/w.  Pension deductions are taken from qualifying earnings of £422 (5% gross - 4% net £16.88 Employee and 3% gross £12.66 Employer).  The figures showing on QB Online are £16.80 Employee and £12.60 Employer.  Do you need any further information?

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Moderator

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

Welcome to the Community, @nvmotors.

 

I can lend a hand with your workplace pensions concern in QuickBooks Online. I've checked here in the system, and haven't found any reported issues similar to the problem from other users.

 

Let's perform some basic troubleshooting to get this sorted out. For now, please go back to the pension settings and re-enter the correct rates.

 

By doing so, we'll be able to check if the cause of the issue is setup related. There are times that the updated information doesn't apply, especially if the Save option isn't being clicked.

 

For Standard Payroll, here's how:

 

  1. Click the Gear ⚙️ icon in the upper-right corner.
  2. Select Company Settings or Account and Settings.
  3. Choose Payroll.

If you have Advanced Payroll, follow these steps:

 

  1. On the left navigation bar, click Empoyees.
  2. Select Payroll Settings.
  3. Press Pension Settings.

For additional information, I've attached some articles you can use as a guide to customise workplace pensions:

 

Please know that I'm just a post away if you have any other questions. Have a great day ahead.

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Level 1

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

Hi, we've re-entered the figures and confirmed in Payroll.  How can we check to see if the correct figures will be recorded on the payslip and pull through for HMRC?  Please can you help with this as we are new to QB online.  Many thanks.

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QuickBooks Team

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

Thanks for actively responding, @nvmotors. I appreciate you for following the steps to re-enter the correct rates in the Pension settings suggested by my peer @AlcaeusF

 

I'd recommend you run a dummy payroll. This way, you can check and verify the correct figures applied to the payslip. 

 

For future reference, read through this article: Run workplace pension reports. It gives you all the employees pension plan including their contributions and their pensionable earnings.

 

Let me know if you have additional concerns. We're always delighted to help. 

 

 

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Level 1

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

Hi can you give me step by step instructions on how to run a dummy payroll?

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QuickBooks Team

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

To allow me to give correct step by step instruction could you advise what payroll it is that your using? Are you using our Standard or Advanced? Thanks 

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Level 1

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

Hi Becky, we are using standard.

Highlighted
QuickBooks Team

Help pls. QB online Pension deductions set at 5% (4% net) and 3%. Payslip is showing deductions as 3.98% and 2.98%. So contributions do not match the old QB desktop?

Hi nvmotors

 

The weekly earnings threshold has increased this tax year to £120/wk and therfore the calculations of £16.80 and £12.60 are correct (540-120 = .420, 420 x 0.04 = 16.80 and 540-120 = 420, 420 x 0.03 = 12.60. f you apply last years threshold, £118/wk, then the calculations should be £16.88 (540-118 = 422, 422 x 0.04 = 16.88 and £12.66 540-118 = 422, 422 x 0.03 = 12.66) .

We presume that you are now running a payrun relating to this financial year?

View solution in original post