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Set up and manage workplace pensions in QuickBooks Online Advanced Payroll

by Intuit•8• Updated 5 days ago

Learn how to set up and manage workplace pensions in QuickBooks Online Advanced Payroll and Bureau Payroll. You can use PensionSync to automate pension reporting or manually set up your scheme.

This article is for customers who use QuickBooks Online Advanced Payroll and Bureau Payroll.

Watch this quick video to learn how to set up your workplace pensions in Advanced Payroll.

Setting up PensionSync

We've partnered with PensionSync to allow our Advanced Payroll customers to digitally connect to their pension providers. This means that you can automatically submit pension contributions information, import opt-out information and enrol newly eligible members. 

Important: Once you select a pension scheme, you cannot switch to another. PensionSync is only available for these providers:

  • NEST
  • Aviva Company Pension
  • Smart Pension
  • The People's Pension
  • NOW Pension

PensionSync automatically imports pension details (including Qualifying Earnings), but any changes must be made directly with your pension provider before they sync into QuickBooks.

Tip: If you use NEST, it will automatically collect contributions and update employee details (including opt-outs, ceased memberships, and contribution changes) within payroll.

Select the Schemes tab to view all your pension schemes in one place. Here you will see the following information: 

  • Pension Provider - the name and logo of the pension provider.
  • Company Name - the name of the employer the pension scheme relates to.
  • Employer ID - the unique ID assigned to this company by the pension provider. 
  • Scheme Status - see whether the scheme is authorised for data to be sent and received through PensionSync.
  • Submission Type - confirmation of whether enrolment or contribution data has been sent for this scheme.
  • Submission Date - the date the last submission was made.
  • Submission Status - confirmation of whether the data is accepted by the pension provider.
  • Required Actions - any actions needed on this scheme. For example there may be an error to resolve, or authorisation may be required. 

Note: To surface all pension schemes that have outstanding actions to the top of the page, select the Required Actions column to sort the list.

In the Activities tab, you can see the granular alerts for each pension scheme. There are a total of four colour-coded alerts and here’s what they all mean: 

  • Green success alerts - this means that a pension submission has been successfully accepted by the pension provider, or that a new scheme has been successfully added to PensionSync. 
  • Amber warning alerts - these notifications normally include an action that may be required. For example, you may need to update a payroll to resolve the error. 
  • Blue information alerts - these provide information and updates.
  • Red error alerts - these normally require an action to be taken. For example, fixing an error or re-authorising a connection to a particular scheme.

Note: Green alerts are automatically dismissed periodically and you can manually dismiss alerts.

To view dismissed alerts

Simply tick the box at the top of the page to show or hide the alerts. Use the search option to easily locate and view a specific scheme.

Find more details about a particular scheme in the Scheme Expanded page. To view the complete breakdown, click the green chevron icon for the following information:

  • Scheme summary - this includes the Company name, Employer ID, Pension provider, date of when the pension scheme was added to PensionSync, Scheme status and a summary of the group/sub group. 
  • Scheme details - this is a detailed breakdown of the contributions plans applicable to the scheme, including both tax relief and pensionable earnings basis.
  • You groups - groups within a pension scheme will be listed here.
  • Submission history - details of any pensions data submissions that have been successfully sent through PensionSync. 
  • Payment approval (for NEST clients only) - gives you the option to switch Automatic Payment Approval on or off if needed for each of your clients. Includes a Payment Approval history so you can see what amounts were approved and when.
    • Note: If this is switched off, you will need to manually approve all payments for clients on the NEST website. Automatic Payment Approval includes 0 payments where no contributions have been submitted. 
  • Worker instructions - shows any opt outs (or other worker instructions) that have happened in the last 6 weeks. You can also export the notifications as a CSV file from here if needed.

To view even more details (like pension contribution rates, payment arrangements and so on), simply click the Scheme details tab. For the scheme’s activity history, hit the View activities tab.

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These steps are for businesses not already using PensionSync. If you already have a PensionSync account, skip to importing your pension scheme details into QuickBooks.

  1. Go to Payroll Settings and then Pension Settings.
  2. Click the Add pension scheme via PensionSync button.
  3. Click Connect to PensionSync button. This will connect your business file to PensionSync.
  4. Once your business file is connected to PensionSync you can launch the Scheme Management Tool (SMT) which you can use to manage all your PensionSync interactions.
  5. To create a PensionSync account, select Open PensionSync dashboard under Actions.
  6. Enter the following details: Company name, Logo (optional), Phone number, and Email address.
  1. Select Import from PensionSync.
  2. Enter your pension provider and your employer ID (If you don’t know it, contact your pension provider.)
  3. Select Link Scheme.
  • Select the button to launch the PensionSync Authorisation Gateway.
  • Once authorised, your pension scheme will sync with QuickBooks.


Manually setting up a pension scheme

If your pension provider is not supported by PensionSync, you can set up a pension scheme manually in QuickBooks. Currently, we don't support CSV uploads for any providers, and switching between manual setup and PensionSync isn't possible.

  1. Go to Payroll Settings, Pension Settings.
  2. Select Add Pension Scheme Manually.
  3. Enter your Staging date, then Save.
  4. Select Add Manual Scheme then fill in the following details:
    • Name: The name of your company
    • Provider Name: This is the name of the pension provider
    • Provider ID: A reference number that you can use internally to identify the pension provider (only really required for employers that have more than one pension scheme).
    • Employer Number: This is the ID given to the employer from the pension provider.
    • Providers Contact Information: This is the providers website.
  1. Enter employer details (e.g., name, address), and Save.
  2. Select Add Contribution Plan and enter:
    • Plan Name (e.g., your company name)
    • Contribution Group ID (can be the same as Provider ID)
    • Pension Type: Choose Net Pay or Relief at Source
    • Qualifying Earnings: Tick the box if applicable
    • Employer and Employee Contribution Rates (enter the correct rates and select frequency

Once your scheme is created, assign it to employees under their Pension Settings.



Managing employee pension settings

Once your pension scheme is set up, you may need to make updates or process employee opt-outs.

For manually created pensions:

  1. Go to ⚙ Payroll Settings, then Pension Settings.
  2. Select the scheme you want to edit and update the necessary details.

For PensionSync pensions:

You cannot edit settings in QuickBooks since they are controlled by your pension provider. Employees must contact their provider directly.

If you use PensionSync, opt-outs will be updated automatically. To manually opt an employee out of a pension scheme:

  1. Go to Payroll and select Employees (Take me there).
  2. Select your employee that you want to opt out of the pension scheme.
  3. Under Pay Run Settings, select Pension Settings.
  4. Select Opt out of this pension scheme.
  5. Enter the opt out date and reference.
  6. Select Yes if you would like to refund pensions contributions for the employee.
    Note: Refunds should only be applied within the opt out period.
  7. Select Set and then Save.


Postponing a pension scheme

Postponement delays an employee’s enrolment in a pension scheme for up to 3 months. This may be useful if you hire temporary or seasonal employees, or if employees occasionally exceed earnings thresholds.

You can postpone from the employer’s duties start date, the employee’s start date, or the date the employee first becomes eligible.

  1. Go to ⚙ Payroll Settings, then Pension Settings, and select Contribution Plan.
  2. Tick the postponement rules that apply, such as:
    • When the employer reaches their duties start date.
    • When an employee joins the company.
    • When an employee turns 22.
    • When an employee becomes eligible after assessment.
  3. Save.
  1. Open Employee Details, then Pension Settings.
  2. Choose Postpone until the following date.
  3. Enter the deferral date (last day of postponement), and Save.

Note: You can have a mixture of employees with individual deferral dates and employees using scheme postponement rules. Once postponement ends, employees will be assessed and enrolled if required.

You can add multiple Contribution Plans by clicking on the Add button after saving your first plan and filling in the details.

When you create a pay run, your employees will be assessed and postponement will be applied to any employees that meet the postponement rule requirements. Once you have finalised the pay run postponement letters will be created which you can then send to the employees.

When the deferral date comes around, employees will be assessed in the pay run and if required enrolled into the pension scheme.



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