I have two employees who company pay £100 into their personal pension funds for each month. How do I record these expenses on SAge please.
Also one employee pays £125 of which £100 paid by company as above and £25 deducted from net salaries. So we have £125 coming out of our bank account each month of which £100 is company expense and £25 reflects pay reduction.
Sage has got Employers Pension fund expense code, shell I create a new one for Emploees and how do I record these £25 please.
If I am correct personal or private pension is deducted after Income Tax has been paid. The pension scheme provider then claims it back on your behalf. So it shouldn't affect payroll, I think.
On the after Income tax is deducted line that depends on the sort of pension and it's something that you need to be careful of.
small ltd's with one person in the business will often have an executive pension plan that is a pot for all employee's even though they are the only one.
That sort of Pension is taken as an expense of the business.
I mention this as I've recently taken over some books and the previous bookkeeper was treating the pension contributions in the way that you envisage rather than deducting the costs from the business and going nowhere near payroll.
Probably won't affect you but just one of those little pit traps to watch out for as pensions cannot all be assumed to fall under the same treatment.
kind regards,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I spoke to my boss. These EE's have served with company for many years and paying into their personal pension fund is a way of saying thank you. So we established it is an expense. I guess I just create a new NC for these payments. Thanks for your help Shaun anyway.
Hi Anna
Have you looked into the idea of Salary Exchange/Salary Sacrifice ? Might be something your ER wants to consider, and can give savings to both EE and ER.
And have i found anutushka77 ???
Have a great day
S
