I have opted an employee out of our pension scheme in the first month and set the option to calculate a refund. When I run payroll the refund is not processing. Ideas?

ariel2 · ‎January 05, 2023

I am using Advanced Payroll and have followed the advised steps to enter the opt out information. Am I missing a setting somewhere?

GeorgiaC · ‎January 05, 2023

That's great, thanks ariel2. If the auto-refund doesn't generate in either of the 2 pay periods immediately following the opt-out, then we recommend manually adding the refund as an adjustment against the employee on the pay run. To do this, click actions on the employee > adjust HMRC values > Select pension contribution option on drop-down > Enter total refund amount > Save. If you'd prefer to go through this via a screen-share, you can begin a chat with us here. :)

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GeorgiaC · ‎January 05, 2023

Hi ariel2, thanks for joining the QB Community - if any draft or automated pay runs were ran for the period prior to opting the employee out of the pension scheme, please delete these and re-run the period as new for the changes to be taken into effect. If this does not calculate the pension refund, please get back to us below with the current pay period dates and the effective opt-out date. :)

ariel2 · ‎January 05, 2023

Thanks Georgia

The pension opt out was posted prior to starting the payroll run. I've also deleted and restarted the run, but this hasn't helped. The opt out date is set as the last day of the previous pay period - is that relevant?

Thanks

ariel2 · ‎January 05, 2023

Just to add more specifics:-

The employee was enrolled in the pension scheme in December (pay periods are calander months), so the assessment date is 1 Dec and the opt out date is 31 Dec.

I have run a dummy run of the January payroll, just to check the refund but nothing is showing...I could switch off the automatic calculation but I'm not sure

1) whether this will cause HMRC records to be incorrect

2) how to process the Employers contribution, in this case - again particularly in reference to statutory reporting

Thanks

GeorgiaC · ‎January 05, 2023

That's great, thanks ariel2. If the auto-refund doesn't generate in either of the 2 pay periods immediately following the opt-out, then we recommend manually adding the refund as an adjustment against the employee on the pay run. To do this, click actions on the employee > adjust HMRC values > Select pension contribution option on drop-down > Enter total refund amount > Save. If you'd prefer to go through this via a screen-share, you can begin a chat with us here. :)

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I have opted an employee out of our pension scheme in the first month and set the option to calculate a refund. When I run payroll the refund is not processing. Ideas?