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Did they opt-out within the month?
Yes, they opted out within a month. I have been advised by the pension company that the employee is due a refund of £72.13 and we are due a refund of £57.34
If you have opted the employee out within calendar month of them being enrolled the payroll system will automatically refund the employee if any deductions have been taken, this should be reflected on the empployees payslip.
I am using Paysuite. What is the process with this?
(sorry for butting in on the question but I have exactly the same problem)
For the employee pension refund there is an option within variable input > PAYMENTS (NON-TAXABLE) > pension refund.
For the employer proportion you can create a Journal Entry, on line one select the bank account that the amount was received to and in the debit column enter the amount. On line two select the Other Payroll Deductions account and enter the amount in the credit column.
The above is on the assumption that you have actually received the refund into your bank account.
Total refund was £17.64, which we have received. The employee part was for £10.08 and I processed this using the variable input. However, If I do the journal entry with the total amount received in the debit column of the bank account and credit other payroll deductions, this leaves my Other Payroll Deductions unbalanced?
I think I am missing something. Please advise
When you create the Journal Entry for the employer part of the pension refund the amounts you enter in the debit and credit column are only for the employer proportion of the refund, £7.56
I am still not getting things to balance out here.
I have added the refund on the employee side using the variable input. This appears to add the refund to the Payroll expenses account (this is done automatically, not by me)
The journal entry showing the refund coming into the bank account had to show the full amount as a debit entry to the bank account?
Should the employee element go to Payroll Expenses to balance it out?
This then leaves the employer element - if i put it into Other Payroll deductions, it puts this account of of balance.
Hope this makes sense. i am getting somewhat frustrated here as this must be a regular occurrence when someone opts out of the pension.
I apologise for the late reply however I was not in the office yesterday afternoon.
I assume that when you initially ran the payroll/previous payroll you then created the relevant expense to the pension provider debiting the 17.64, or this amount was included in an overall amount, from the Other Payroll Deductions account.
On the next/current payrun you have then added the pension refund via variable input for 10.08
You will then have to create a Journal Entry debiting the bank account for the 17.64 and crediting the Pensions account with 7.56 and also crediting the Payroll Expenses account with 10.08.
I would be grateful if you can inform me if this has resolved the issue.
Thanks for joining us in this article, MatthewLeggett.
If you're using QuickBooks Online (QBO, any contributions deducted from the employee should be refunded on the next available payroll run if there is a valid opt-out.
For more information, you can check out this article: Workplace Pensions.
Otherwise, I recommend contacting our Payroll Support Team if you're using the Desktop version of QuickBooks. They have a specific tool to help you further with the adjustments.
Here's how to contact them:
That'll get you in touch with one of our payroll specialists.
Please let me know if you have any questions. I'm always around to help. Have a great day.