I am not sure under which category to post pension contributions?
7007 Employers Pensions
Hi. Do I enter the Employers Pension contribution as a âreceiptâ from the dashboard?
Thanks, Darren
Youâd normally enter it as part of the journal you do when you run your payroll. The contributions you pay over to the pension provider will be a combination of the employerâs contributions (which go on 7007) and the employeesâ contributions that you have deducted from their pay - my payroll journals generally look like
- debit 7000 gross pay before deductions
- debit 7006 employerâs NI contributions
- debit 7007 employerâs pension contributions
- credit 2210 everything I owe HMRC (employee NI and tax deducted from gross pay, plus employer NI)
- credit 2230 everything I owe the pension company (employee contributions deducted from gross pay, plus employer contributions)
- credit 2220 remaining net pay due to employees
Then my payments to the employees, HMRC, and the pension company are all just simple balance sheet transactions.
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