I am not sure under which category to post pension contributions?
7007 Employers Pensions
Hi. Do I enter the Employers Pension contribution as a ‘receipt’ from the dashboard?
You’d 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 employer’s contributions (which go on 7007) and the employees’ contributions that you have deducted from their pay - my payroll journals generally look like
- debit 7000 gross pay before deductions
- debit 7006 employer’s NI contributions
- debit 7007 employer’s 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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