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May 16, 2019
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How do I process a refund due for the pension payments made by employer and employee for an employee who has now opted out.

  • May 16, 2019
  • 2 replies
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Best answer by DAJA

Hi

I am using Paysuite. What is the process with this? 

(sorry for butting in on the question but I have exactly the same problem)

thank you

 

Alison


Contacted QB direct.

Create Payroll Item for Pension Refund as an addition and add to employees payslip

Use adjust payroll liabilities to reduce employer pension contribution.

 

2 replies

May 16, 2019

Hello DAJA,

 

Welcome to the Community - thank you for your question!

 

Did they opt-out within the month?

 

Thanks,

 

Talia

DAJAAuthor
May 16, 2019

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

May 16, 2019

Are you using QuickBooks Payroll, or PaySuite?

 

Thanks,

 

Talia

January 21, 2020

Hi, unsure how to do this within Quickbooks Desktop.  Employee has opted out within one month, I've read that refund will automatically be processed, I have tried to create a pay chq after this date but no refund has appeared on payslip.  I've also read in this post that one needs to create an additional payroll item for pension refund, I've tried to do this but I'm not sure how to process.  Can you help?

January 21, 2020

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.

 

January 28, 2020

Thank you so much, Chris.

 

The step by step instructions were crystal clear and extremely helpful. 

 

One more question, when creating a new payroll item type (which I'm calling Pension Refund Employee), which payroll item type is this, an "addition" or a "deduction"?