Forum Message

Pension Contributions Query

Do you have any hints on how to enter pension contributions?

Thank you.


Posted by Audrey Curnock on Sep 3, 2019 6:14 PM BST

Hi Audrey,

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)


Posted by Solar Accounts Customer Support on Sep 4, 2019 4:36 PM BST

Thank you very much Mark, very helpful - and much better than me guessing !
Best wishes
Audrey


Posted by Audrey Curnock on Sep 4, 2019 4:38 PM BST