cancel
Showing results for 
Search instead for 
Did you mean: 
Highlighted
Level 1

Employee pension contributions QBO Advance Payroll

Just finished my first monthly payroll (April 2020) and the employee pension contributions are exactly £20.80 less than previous payroll (March 2020), having moved from QB Desktop to Online.  Does anyone know why this would happen, salaries haven't varied.

 

Also do I have to submit a contribution schedule as I'm connected using pensionsync and I thought it automatically took pension contributions once submitted to the pension provider.

 

New to this and struggling a little, any help greatly appreciated.  Stay safe.

Solved
Best answer April 22, 2020

Accepted Solutions
Highlighted
QuickBooks Team

Employee pension contributions QBO Advance Payroll

Hi Sharon, 

 

Thanks for joining us on the Community. 

 

If the pay run was submitted using PensionSync then the contribution amounts would have been automatically sent to the provider. 

 

The pension contribution percentages are calculated on the gross pay amount, whereas in Desktop you could choose for this to be net. Do you know if this may be the reason for the difference? 

 

View solution in original post

15 REPLIES 15
Highlighted
QuickBooks Team

Employee pension contributions QBO Advance Payroll

Hi Sharon, 

 

Thanks for joining us on the Community. 

 

If the pay run was submitted using PensionSync then the contribution amounts would have been automatically sent to the provider. 

 

The pension contribution percentages are calculated on the gross pay amount, whereas in Desktop you could choose for this to be net. Do you know if this may be the reason for the difference? 

 

View solution in original post

Highlighted
Level 1

Employee pension contributions QBO Advance Payroll

Hi Georgia,

 

Thanks for your quick response.  I have now taken a thorough look and yes I now understand that QB has automatically calculated the correct amounts, they differ as a result of the increased pension threshold.  Being new to QB online and having that ability in Desktop to input the pension contribution rates I was a little concerned and probably need to trust the system more than I do.  

 

I'm sure I'm going to be using the Community a lot more often as I get used to the transition from Desktop to Online, after 20 years on Desktop it's time for this old dog to learn some new tricks.   

 

Thanks again, much appreciated. Sharon x

Highlighted
QuickBooks Team

Employee pension contributions QBO Advance Payroll

Thanks for getting back to me Sharon! I had considered the new thresholds but wasn't sure this would total the difference so it's handy to know this is the cause 🙂

 

Yes please feel free to get back to us here whenever you need. 

 

Take care 🤗

Highlighted
Level 1

Employee pension contributions QBO Advance Payroll

Hi Georgia,

 

I'm hoping you can help me as my query is similar.

I've just migrated from QB deskptop to Online with advanced payroll.

 

I'm not using PensionSynch.

We're using NEST, which operates a Relief at Source system (deductions from Gross), so I've selected that on QB, as well as the option to calculate based on on qualifying earnings, and the amounts don't match with what NEST is calculating... In fact if I select NET pay instead of Relief at Source on QB it matches!

An employee's contribution is set at 4%: if the the pensionable pay is say £1500, then that contribution should be £60, but QB is calculating £48... (the employee contribition of 3% £45 is however correct...)

I'm just wondering if there is a bug on QB, surely if I select Relief at Source it should come up to £60?

Highlighted
QuickBooks Team

Employee pension contributions QBO Advance Payroll

Thank for joining this thread, accounts279.

 

I'm here to help you today. Let's start by checking the pensionable items. There may be some payroll items that were not included on the calculation. That's why the employee deduction is incorrect.

 

The following steps outlined below will help verify those items:

 

  1. Click the Gear icon at the right top ,then select Account and Settings.
  2. Proceed to Payroll.
  3. Click Pension pay types to expand it.
  4. Turn on the item by clicking the toggle button. The color is green when turn it on.
    pensionableitem.PNG
  5. Click Save, then Done.

I've got these handy articles for you to help manage Pensionsync integration:

Let me know if you need additional information by commenting below. I'm always glad to help.

Highlighted
Level 1

Employee pension contributions QBO Advance Payroll

Hi, thank you for your message!

 

Unfortunately, I can't see Payroll in Account and Settings , and there is no inforamation on Pension pay types from there or anywhere in that section

Highlighted
Level 1

Employee pension contributions QBO Advance Payroll

As you can see, calculations are wrong This is from selecting 'Relief at source' as pension type. Calculations are wrong, 4% of £1231 should be £49.24 and not £39.40.

Weirdly I can get the 'right' amount if I select a Net Pay pension type in QB, but on the pay slip it's marked as a post tax deduction, which is wrong.

 

Highlighted
Level 2

Employee pension contributions QBO Advance Payroll

Hi, i have exactly the same problem, it looks like it is deducting the lower earnings threshold and then using this figure to calculate the pension contributions but i want it to calculate them on the gross figure.

I have tried different settings but no luck yet!

QuickBooks Team

Employee pension contributions QBO Advance Payroll

Hi there, @BarryS2.

 

Thanks for joining in this conversation. Please know that the system calculates contributions and deductions depending on how they are set up in the account. 

 

I'd suggest you check the employee’s profile first to ensure all the payroll items are included and added correctly. Also, you can reach our support team to see if they have another way to review this calculation.

 

Here's how to contact customer support:

  1. Go to the Help icon located in the upper right-hand corner.
  2. In the Help window, click the Contact Us button located at the bottom.
  3. Enter your concern, and select Let's talk.

I've included our QuickBooks Online Help Articles hub in case you need some information for your future tasks.

 

Let me know if you additional questions. I'll be around to help. Stay safe.

 

Highlighted
Level 2

Employee pension contributions QBO Advance Payroll

Hi All,  thank you for you response, i have manage to sort the problem out, when i set up the Contribution Plan for my pension in pension settings the was a tick box which says 'Calculate pension on qualifying earnings' this was checked, i unchecked this box and now the calculation are correct.

for anyone else who has had this problem i took the following steps:-

Click on the Cog in the top right hand corner.

Click Payroll Settings.

Click Pension Settings.

Scroll down then click on your Plan under Contributions plans which you should have created.

Scroll down until you see a check box called Calculate pension on qualifying earnings, uncheck this box.

Scroll down and click Save.

the calculates for your pension contributions should now should now be done from the gross figure.

 

Hope this helps!

Thanks All and Stay Safe!

Highlighted
Level 1

Employee pension contributions QBO Advance Payroll

Hi,

 

Thank you for your message.

 

I'm not sure this is the correct solution... If you do that it doesn't take into account the lower/upper earning threshhols for relief at source, which means (for me) that calculation will be much higher

Highlighted
Level 1

Employee pension contributions QBO Advance Payroll

Can I please join this discussion and ask for help regarding online payroll standard.  I paid one employee an incorrect amount. Don't want to delete the whole payroll what can I do. ON desktop you could delete one and re run it.

 

Hating this new online payroll. Reports are not good and after 15 years and 70 employees successfully on desktop I am annoyed that I have been forced to convert to online from desktop. Most stressful payroll month with furlough staff and an inadequate payroll to run it on

Highlighted
Level 2

Employee pension contributions QBO Advance Payroll

Hi accounts279,

I was unsure which to pick at first NET or Relief at Source as my last pension was set up for me, my pension is calculated on the gross figure and do not get Relief at Source so i have to pick NET (I was a bit confused) then read this article:-

Pensions operate a net pay arrangement and this means the pension contributions are collected before income tax. This means for taxpayers, full tax relief at the highest rate is automatic and no income tax is paid on the money being contributed to a pension.

relief at source. Here, employers take 80% of an individual’s pension contribution from their take home pay, i.e. after income tax has been deducted. The tax relief is then reclaimed from HMRC by the pension scheme, who send in a monthly request and get the cash back about six weeks later. HMRC only send back the basic rate of tax, namely 20%.

I agree that it comes up on the payslip as a Post Tax Deductions but the figures for me are correct and cannot find another way to get the correct figures, not sure how to correct that bit, running my payroll in a couple of days so i am still having a look to see if this is there is another way!

Highlighted
Moderator

Employee pension contributions QBO Advance Payroll

Hello guys! Thanks for joining this thread.

 

Let me address your individual concern and start with janel2's question. 

 

For QuickBooks Online Standard Payroll, you'll have to roll back the entire payroll and recreate the payments. There isn't a way we can delete only one employee payment,

 

Before deleting the entire payroll, you'll want to secure a print out for all the payslips and payroll reports in case you'll need it in future. 

 

To delete your pay run:

 

  1. Go to Employees and choose Payroll.
  2. In the Payroll History section, select the most recent period.
  3. On the Payroll details page, click Action and select Delete Payroll.
  4. Type Yes in the box, then click Delete.
  5. Repeat for any additional pay runs you require.

You can refer to this guide on how to delete the payroll: Deleting a pay run in QuickBooks Online Standard Payroll.  

 

Once done, you can recreate the payroll and resubmit the FPS to HMRC

 

Additionally, you can learn more about managing your payroll through this link.

 

For BarryS2, you may need to verify this with your pension provider. This is to make sure you use the appropriate pension type for your type of business.

 

Drop me a reply if you need more help. It's always my pleasure to lend a hand. Stay safe and have a wonderful rest of the day!

Highlighted
Level 2

Employee pension contributions QBO Advance Payroll

I had exactly the same - I spent two hours on the phone with a techie and he could not explain why the deductions were taking on some employees, not on some, and at different rates on others.

We deleted the payroll items, reinputted, and re-ran the payroll several times. Finally, for no reason, it just started to work correctly and has done since. I would recommend ringing support and screen sharing, and get them to figure it out, but I am not surprised that there is something wrong.

 

Now, for me, since Week 4, the Pensionsync link has stopped, and I have been told by Intuit today, that it will not send the data to my pension provider because the pay day is not in the pay period. It's taken weeks to get this answer.
The only solution is for me to contact the pension provider and get them to amend their system! I pay Intuit, but not the provider - go figure.


Suffice to say I am leaving QB Online and eventually QB desktop. I have lost hundreds of hours due to their bugs and errors from migration. If I knew what I know now, I would stayed on Desktop and purchased serperate payroll software, and just journalled it in.


A word of warning - be careful with annual leave on migration - that really screwed up, and payroll payments do not deduct the leave balances!