Opting an employee out of pension is easy in QuickBooks Online (QBO) Payroll, and I'm here to help you complete this process, sandratippettcry.
The method of opting employees out of a pension scheme will vary depending on your payroll plan (Standard, Advanced, or Core Payroll). If you're using QBO Standard Payroll, please take note of the following details before proceeding:
- The employee must contact the pension provider within a set period
- If the employee does opt out correctly, then your pension provider will provide details of a valid removal
- If there's a valid opt-out, then any pension contributions deducted from the employee must be refunded on the next available payroll run
- You'll (as an employer) also receive a refund of any employer contributions paid to the pension provider
- You cannot influence the employee to opt-out, it’s illegal to put pressure in any way on them
Whenever you're ready, here's how:
- Go to Employee and click on the employee's record.
- Select Workplace Pension.
- Turn off the Enrolled in pension toggle.
- Choose Opt Out.
- Enter the effective opt-out date, then Save.
If you utilize Advanced or Core Payroll service, please see either of the articles below for the step-by-step guide:
Additionally, you may want to check out any of these references to make the most out of your payroll service and guide you with your tasks:
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