Set up workplace pensions in QuickBooks Online Core Payroll
by Intuit•25• Updated 2 weeks ago
Learn how to set up workplace pensions in QuickBooks Online Core Payroll.
Before you begin, make sure you have the following information ready:
- Pension provider name and reference number
- How much your and your employees pay into the pension
Step 1: Choose a workplace pension start date
- Select the gear icon, and then select Payroll settings.
- Next to Workplace pensions, select the pencil ✏️ icon.
- Select the calendar icon to choose your start date.
If you don't have a start date, tick I don't have a start date. - If you'd like to choose your own re-enrolment date, select Do you want to re-enrol your employees automatically and enter the date.
- Select Save, and then Done.
Step 2: Set up a pension scheme
- Next to Pension schemes, select the pencil ✏️ icon.
- Select Add a company pension.
- Select your pension provider from the dropdown. If you can't see it on the list, select Other.
- Enter the following details:
- Pension name–this will show next to the pension amount on the employee's payslip.
- Provider reference number–this is a unique reference assigned to you.
- Group name–use this if you have many employees and want to categorise them.
- To auto enrol employees in the pension, select Use earnings thresholds and use the latest defined thresholds.
- Select the taxation method.
- Select Save.
Step 3: Let your employees know
You need to inform your employees about the enrolment process within six week of your duty staging date as an employer. Some pension providers can send out communications on your behalf. If they can't you can use The Pensions Regulator's letter template to write to your staff.
Step 4: Add employees to the pension scheme
Next, it's time to enrol eligible employees into the pension scheme. Find out if an employee is eligible.
- Go to Payroll, and then select Employees.
- Select your employee.
- Next to Workplace pension, loan & other deductions, select the pencil ✏️ icon.
- Select Set up workplace pension.
- Choose the worker category and applicable setting.
- Choose the pension provider. You can add a new one if you need to.
- Enter the employee and employer contribution amount/percentage.
- Select Save.
Automatic enrolment and postponement
All employers are required to provide a workplace pension scheme for their employees. This is called ‘automatic enrolment’.
You have the option to delay determining which employees should be enrolled in a pension scheme for up to three months. This is called postponement.
It is important to communicate with your staff and inform them about the postponement and how automatic enrolment applies to them. For more help and info, read The Pensions Regulator postponement guidance.
Opting out of a pension scheme
Employees who have been automatically enrolled or who have opted in can choose to opt out. However, they can only do so after they've been automatically enrolled. The opt-out period is one month from when active membership is created, or they receive their letter with the enrolment information, whichever is latest.
According to The Pensions Regulator, if an employee opts out of an auto-enrolment pension, they are entitled to a full refund of their contributions within a month of receiving a valid notice. Here's how to opt an employee out of a pension scheme.
Step 5: Complete the declaration of compliance
As an employer, you must submit a Declaration of Compliance to The Pensions Regulator within 5 months of your staging date/duty start date to confirm that you've fulfilled your auto-enrolment duties. Failure to do so on time may result in unwanted penalties and fines.
Use the Declaration of Compliance checklist to check that you have all necessary information ready.
Step 6: Reassess your employees
Every 3 years after your initial duty start/staging date, you need to reassess employees who have opted out or stopped being members in previous years.
If you chose to enrol your employees automatically in Step 1, QuickBooks will re-assess employees who have opted out or stopped their membership and will categorise them accordingly.
You have the flexibility to choose a specific re-enrolment date within a 6-month window. You also have to inform employees who have opted out or ceased membership that they will be reassessed and potentially re-enrolled, if applicable.
You also have a duty to complete the Declaration of Compliance with The Pensions Regulator.
More help
Looking for guidance on navigating QuickBooks Online Core Payroll? Check out this resource page with how-to guides to help you.
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