Hi, I have an employee who has opted out of the salary sacrifice pension. I have received a payment from our provider and need to repay our employee £94.47. Presumably there is TAX & NI to reclaim? How do I do this?
Hi Pamela,
Thanks for using Community Hub 
A salary sacrifice pension scheme deducts pension contributions before PAYE and NI are calculated. That means to refund it, you should process it on a pre tax, pre NI payment. This increases the employee's taxable and NIable pay when the refund is processed, and your software will calculate any liability owed.
We've got some more useful information on this in our how to manually process a pension refund through enter payments guide.
Just editing this to add, if you use the Pensions Module and haven't processed the opt out yet, you can process the refund automatically in the Pensions Assessment. Just in case, I'll add another link to our how do I process opt-out/leave requests in the Pensions Module guide.
If this has answered your question, please click Verify Answer.
Regards,
John Howells
Sage UKI
Hi Pamela,
Thanks for using Community Hub
A salary sacrifice pension scheme deducts pension contributions before PAYE and NI are calculated. That means to refund it, you should process it on a pre tax, pre NI payment. This increases the employee's taxable and NIable pay when the refund is processed, and your software will calculate any liability owed.
We've got some more useful information on this in our how to manually process a pension refund through enter payments guide.
Just editing this to add, if you use the Pensions Module and haven't processed the opt out yet, you can process the refund automatically in the Pensions Assessment. Just in case, I'll add another link to our how do I process opt-out/leave requests in the Pensions Module guide.
If this has answered your question, please click Verify Answer.
Regards,
John Howells
Sage UKI
