How do I post employer pension contributions and payment
Hi Vivien,
I believe that you can treat the Employer and Employee pension contributions in
the same way as the NI contributions. That is, the employer
contribution increases
the Employee Costs figure and the employee contribution decreases the
Amount Paid figure.
Let's look at the example on this help topic:
https://www.solaraccounts.co.uk/help/how-to-record-paye-and-ni-contributions
.php
Without the pension contributions we have:
Amount Paid: £1,305
Employee Costs: £1,870
Income Tax and NI Liability: -£565
Now let's say we add employee pension contributions of £26.44 and employer
pension contributions of £22.03:
Amount Paid: £1,278.56 (a decrease of £26.44)
Employee Costs: £1892.03 (an increase of £22.03)
Income Tax and NI Liability: -£613.47 (an increase in the amount owed of
£48.47)
You would then make pension payments allocated to the "Income Tax and NI
Liability" account (alternatively you could create a separate liability
account to track the pension liabilities)
Thank you for this Mark, just one additional question, when the £22.03 employer pension contribution is taken via DD from bank where will I post this to ?
Hi Vivien,
Use the Income Tax and NI Liability account for that purpose.
Thank you