Tagging NEST pension payments

[Termeek1]

we have just started paying pension for an employee - plus employer contribution
NEST the pension company takes both employee and employer contributions together in one payment.
how should this be tagged? there seems only a Employers pensions and a pension fund in the Something not on this list drop down.
if i need to create something new how do i do it/what code number would i need to use and what should it be called?

[QFBeth]

Hi @Termeek1

I believe you can use the pension fund option and then you’d journal as part of your payroll?

You may be best to check with your accountant to make sure that it is being allocated correctly

[ian_roberts]

I used to use NEST with my employees, and the way I handled it was exactly analogous to the way you deal with PAYE (where employee deductions for tax and NI, as well as employer NI contributions, are all paid over to HMRC in a single transaction). Each time I ran payroll I’d have a couple of extra lines in the payroll journal:

• debit “Employer pensions” for the employer contribution amount
• credit “Pension fund” for the sum of employer contributions plus employee deductions
• (this is balanced by the fact that the “net pay” amount is now reduced because you’ve deducted the employee’s contribution)

Then whenever I made a bank payment to NEST I’d simply tag that as “something not on the list” to the “pension fund” nominal to cancel out the credits.