A monthly paid part time employee has had a pension deduction show up on his payslip. How the heck that happened I don't know. Somehow the tick box that had been unticked has suddenly become ticked making the deduction active again. The Pension is an old non compliant scheme that was discontinued when we passed our Auto Enrolment staging date. Furthermore this particular employee has reached retirement age and is now only working two days per week. It was originally set up on Sage by our accountant, not me and is not part of the pension part of the programme, its just a pre tax deduction that was called Pension (I've set the new AE pension up properly.)
In my absence the director has paid the shortfall that showed on his payslip in cash.
So - we now have a few choices:
Do a rollback (the FPS date was 23rd) or
Wait until next month and add a Pay Element called Pension Correction or similar (he will then be taxed on the amount but that should correct the fact that the deduction was pre-tax - yes?) He has very little personal allowance due to his other income/pensions he is drawing.
Then how do we show this in our books? My colleague is going to phone the accountant to get his take on it.
You are never ever ever allowed on holiday again Julie.
Did you go anywhere nice? Or just plagued by rugrats (in the nicest way)?
I would say roll back. For two reasons (one below#, the other as technically he has been paid the difference by your boss, so under RTI you should report)
But before that - have a try at what you are planning - she if the correct tax amount thingy works, given the week/month cumulative situation with payroll I suspect it may be a few pence or pounds out and hence # (above)
Depends which method you use as to what is shown in the books.
I take it the sage you mention is just the sage payroll at this point?
__________________
Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Yes Sage 50 Payroll. Iāve only ever rolled back before the payment date before but I guess as you say, technically it should be reported.
And we went to London to watch Hamilton. Daughter is doing Gcseās This year so we wonāt be going anywhere at Easter or May half term.
However from a practical point of view it is far simpler to just add the same amount in the following period when running the payroll, as long as the net effect doesn't mess up NI or something.
Even if it were caught in an inspection, which is vanishingly unlikely, my experience is that HMRC takes a reasonable view of such "infractions" where it is obvious that there was no attempt to cheat the system, simply a processing error.
Heās on a different NI category due to being past retirement age so that should be OK
Will experiment without actually pressing the update button tomorrow.
