How do I account on QF for Workplace Pension Contributions. We use Smart Pension so do I show that as a supplier or do account for this by making an entry on Current Account, If the latter do I record as Pension Fund (2230) or Employers Pensions (7007) or something different?
7007 Employers Pensions will do
Thanks Faraday,
With the surname Keynes I guess you know your financial onioins!
Kind Regards
Ian
I need to start doing this next week for my employees too, I’m intending to treat it the same way as I do the normal payroll elements - in the payroll journal debit 7007 for the employer contributions, credit some balance sheet code for the total (employee plus employer) I owe to the pension provider, then later when I pay the contributions over I would tag the current account transaction to the same balance sheet nominal.
You can create a new balance sheet liability account and call it pension payable, credit that with employee and employer pension payable and once paid from bank tag that amount to debit pension payable, this way you can keep track of any outstannding pension on top of existing PAYE payable
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Thanks, it’s always nice to get a sanity check from a real accountant.