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

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

Hi Caroline69,

Thanks for posting on the community.

I'm afraid that the pension refund after option out does not calculate automatically. Please see below the steps to create this pension refund in QuickBooks desktop.

1) Employer contribution.

Click on , Employees tab at the top> Payroll taxes and liabilities> Adjust liabilities.

In the next screen, click the 'Employee' radio button, and then from the drop down select the employee in question. Under item name choose the employer pension item which you have created, and in the amount column put the amount of employer pension to be reduced and put a minus in front of it. The click 'Ok' to save adjustment.


2) Employee refund

In order to refund the amount taken from the employee, you need to add this in as a separate addition item in your payroll item list and then add this onto the 'Other payroll items' section on the payroll payment details.

To set this item up, go to Lists> Payroll item list> and then create new. Then place this item under the 'Other payroll items' section of the payroll payment, and put in the positive amount to be refunded to the employee.