record employee's pension contribution in Xero's mannual payroll journal?

[Justin B1212]

My accountant showed me how to create manual payroll journal in Xero, but I have forgotten to ask if I need to record employee's pension contribution in the payroll journal? If I need to, how do I do this? Many thanks.

 

[WaveJumper]

I am in Xero right now if you stick your question in the help tag it gives you a step by step guide

 

[Scalloway]

Dr Wages
Dr Employers NI
Dr Employers pension
Cr Net Wages
Cr PAYE and NI
Cr Pension provider

 

[Justin B1212]

Dr Wages
Dr Employers NI
Dr Employers pension
Cr Net Wages
Cr PAYE and NI
Cr Pension provider

Thank you very much, how do I record the employer's pension contribution and employee's pension contribution in the Xero manual journal for monthly wage? I can see there are two accounts for pension: 482 pension costs, and 858 pension payable. Also could you please let me know I should record the payment to Nest pension ( including both employee contribution and employer contribution) in Xero, is it under 482 pension costs or under 858 pension payable?

 

[Scalloway]

The expense side of the transaction goes to 482 which is a P & L code. 858 is a current liability code and that is where the credit goes. When you pay Nest it comes from 858 which will remove the creditor balance.

 

[Justin B1212]

The expense side of the transaction goes to 482 which is a P & L code. 858 is a current liability code and that is where the credit goes. When you pay Nest it comes from 858 which will remove the creditor balance.

Thank you when I try to record the pension in the manual journal for the monthly wages, do I need to enter the employee contribution and under which category should I enter it?

 

[Scalloway]

To amplify my earlier post

Dr Gross Wages
Dr Employers NI
Dr Employers pension
Cr Net Wages
Cr PAYE and NI
Cr Pension provider - Employer contribution
Cr Pension provider - Employee contribution deducted from gross wages

 

[Justin B1212]

To amplify my earlier post

Dr Gross Wages
Dr Employers NI
Dr Employers pension
Cr Net Wages
Cr PAYE and NI
Cr Pension provider - Employer contribution
Cr Pension provider - Employee contribution deducted from gross wages

One last question if you don't mind, could I please check if the following entry on the monthly salary manual journal is correct?

Dr Employers pension-----482 pension costs
Cr Pension provider - Employer contribution----858 pension payable
Cr Pension provider - Employee contribution deducted from gross wages------858 pension payable

Thank you so much for your kind help.

 

[Scalloway]

Yes that is correct.