cancel
Showing results for 
Search instead for 
Did you mean: 
Not applicable

How do I process a refund due for the pension payments made by employer and employee for an employee who has now opted out.

 
Solved
Best answer 05-20-2019

Accepted Solutions
Highlighted
Not applicable

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

Contacted QB direct.

Create Payroll Item for Pension Refund as an addition and add to employees payslip

Use adjust payroll liabilities to reduce employer pension contribution.

 

15 REPLIES 15
QuickBooks Team

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

Hello DAJA,

 

Welcome to the Community - thank you for your question!

 

Did they opt-out within the month?

 

Thanks,

 

Talia

Not applicable

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

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

QuickBooks Team

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

Are you using QuickBooks Payroll, or PaySuite?

 

Thanks,

 

Talia

Not applicable

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

I am using QuickBooks Payroll

QuickBooks Team

Re: How do I process a refund due for the pension payments made by employer and employee for an e...


Hi DAJA

 

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.

Not applicable

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

Hi

I am using Paysuite. What is the process with this? 

(sorry for butting in on the question but I have exactly the same problem)

thank you

 

Alison

Highlighted
Not applicable

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

Contacted QB direct.

Create Payroll Item for Pension Refund as an addition and add to employees payslip

Use adjust payroll liabilities to reduce employer pension contribution.

 

QuickBooks Team

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

Hi AMR1971

 

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.

 

 

Not applicable

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

Hi John

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

thanks

 

 

QuickBooks Team

Re: How do I process a refund due for the pension payments made by employer and employee for an e...


Hi AMR1971

 

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

Not applicable

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

Hi John

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.

thank you

QuickBooks Team

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

Hi AMR1971

 

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.

 

 

Not applicable

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

Hi John

 

That's it sorted now. 

Thanks for the help. 

Community Explorer **

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

I have been notified that an employee has opted out of the pension, he is due a payment of £17.35 and I am due a refund of £10.41, I have adjusted my employee to OPTED OUT, however when I process this weeks payroll, his payslip is showing the refund, how do I correct this
Moderator

Re: How do I process a refund due for the pension payments made by employer and employee for an e...

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:

  1. Open QuickBooks.
  2. Go to Help.
  3. Choose QuickBooks Desktop Help.
  4. Click on Contact us.

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.