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

Discussion in 'Accounts & Finance' started by Justin B1212, Apr 30, 2021.

  1. Justin B1212

    Justin B1212 UKBF Newcomer

    86 1
    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.
     
    Posted: Apr 30, 2021 By: Justin B1212 Member since: Jul 3, 2020
    #1
  2. WaveJumper

    WaveJumper UKBF Legend

    2,243 563
    I am in Xero right now if you stick your question in the help tag it gives you a step by step guide
     
    Posted: Apr 30, 2021 By: WaveJumper Member since: Aug 26, 2013
    #2
  3. Scalloway

    Scalloway UKBF Legend

    17,353 3,742
    Dr Wages
    Dr Employers NI
    Dr Employers pension
    Cr Net Wages
    Cr PAYE and NI
    Cr Pension provider
     
    Posted: May 1, 2021 By: Scalloway Member since: Jun 6, 2010
    #3
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  4. Justin B1212

    Justin B1212 UKBF Newcomer

    86 1
    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?
     
    Last edited: Oct 13, 2021
    Posted: Oct 13, 2021 By: Justin B1212 Member since: Jul 3, 2020
    #4
  5. Scalloway

    Scalloway UKBF Legend

    17,353 3,742
    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.
     
    Posted: Oct 13, 2021 By: Scalloway Member since: Jun 6, 2010
    #5
  6. Justin B1212

    Justin B1212 UKBF Newcomer

    86 1
    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?
     
    Posted: Oct 13, 2021 By: Justin B1212 Member since: Jul 3, 2020
    #6
  7. Scalloway

    Scalloway UKBF Legend

    17,353 3,742
    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
     
    Posted: Oct 13, 2021 By: Scalloway Member since: Jun 6, 2010
    #7
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  8. Justin B1212

    Justin B1212 UKBF Newcomer

    86 1
    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.
     
    Posted: Oct 14, 2021 at 10:22 PM By: Justin B1212 Member since: Jul 3, 2020
    #8
  9. Scalloway

    Scalloway UKBF Legend

    17,353 3,742
    Yes that is correct.
     
    Posted: Oct 15, 2021 at 8:37 AM By: Scalloway Member since: Jun 6, 2010
    #9
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