Skip to main content
T
thomasmeany
June 5, 2019
Solved

Contributing to employee non-workplace pension

  • June 5, 2019
  • 2 replies
  • 0 views

How can I set an employee up who has a pension scheme which is NOT a workplace pension scheme?

 

My colleague and I are company directors and we both hold Self Invested Pensions (SIPPs) since these are cheap and convenient. It is most text efficient to contribute to the SIPP directly (therefore avoiding NI contributions) but I am not sure how to set this up on Quickbooks. 

 

Is this possible? 

 

 

    Best answer by Ryan_M

    Good day @thomasmeany,

     

    Let me help clear this up for you. At the moment, QuickBooks Online (QBO) only supports workplace pensions.

     

    I'd suggest contacting your pension provider to confirm if it's possible. And if it is, you can also ask them how to record it in QBO.

     

    Once that's been taken cared of, you can view this page for future reference: QuickBooks Online Payroll Hub.

     

    Drop me a comment below if you have any other questions.

    2 replies

    P
    payment after leaving
    June 5, 2019

    Hi thomasmeany

     

    We would be grateful if you can inform us how you currently pay towards the pension scheme, are the contributions taken from your personal bank accounts?

    T
    thomasmeanyAuthor
    June 5, 2019

    Hi, 

     

    We (both directors) currently are lower rate tax payers and contribute to the scheme manually with funds that have been paid to us personally from our business. However, this means we have to pay NI contributions so for each £100 we contribute we pay £12 in NI contribution which we would not have to pay if this was paid directly from our salaries. 

     

    Does Quickbooks have the option to setup an employee pension contribution which is NOT a workplace scheme?

     

    Tom

    E
    EmmaM
    June 5, 2019

    Hello Thomas

     

    Are you using QuickBooks Online Payroll or Paysuite for your payroll? If you click on employees does it say powered by Paysuite in the top left if you are clicking on employees

     

    Thanks

    Emma

    G
    GeorgiaC
    June 5, 2019

    Hi Tom,

     

    Currently the QuickBooks Online Payroll only supports workplace pensions which are based on employee and employer calculation percentages.

     

    Do you pay a known amount into your pension each month?

    T
    thomasmeanyAuthor
    June 5, 2019

    Hi, 

     

    Could you flesh your answer out a bit? It will help others with the same issue in the future. 

     

    If I understand you correctly the Quickbooks online system only permits a fixed percentage of employer and employee contribution each month. This can be paid in three formats:

    Relief at source (no tax)

    Relief at source (w tax)

    Net

     

    I would opt for option 3 since in this way we could receive payment of the total amount before any deductions like NI or EE.

     

    Is this possible? We do contribute fixed sums but would apply this via a percentage if necessary.

     

    Best,  

    R
    Ryan_MAnswer
    June 5, 2019

    Good day @thomasmeany,

     

    Let me help clear this up for you. At the moment, QuickBooks Online (QBO) only supports workplace pensions.

     

    I'd suggest contacting your pension provider to confirm if it's possible. And if it is, you can also ask them how to record it in QBO.

     

    Once that's been taken cared of, you can view this page for future reference: QuickBooks Online Payroll Hub.

     

    Drop me a comment below if you have any other questions.

    Terms & ConditionsAccessibility statement