How do you refund pension contributions ...

Sital Hirani

• March 07, 2018 00:00

How do you refund pension contributions to a leaver. The employee opted out within the opt out period. With us being weekly payroll but two week retro payment pay day, the employee was already made a leaver.

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  Cristabelle Metcalfe

  • March 07, 2018 00:00

  Hi @Sital Hirani​,

   

  Good afternoon! If the opt out is actioned on the Pension file for en employee after the Payroll cut off date the employee will receive the refund in the following payrun. For future opt outs I would suggest checking the Payroll cut off date (found in the Company settings) to see if the employee opting out will get the refund that payrun, or the proceeding one.

   

  I hope that helps?

  Cris

  Fourth

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  Sital Hirani

  • March 07, 2018 00:00

  Hi Chris,

  The employee opted out and left his employment. We had to terminated her, but she was within her opt out period. There is no future pay runs to give her a refund. I have received the refund from the pension provider, I need to give it back to the employee.

  Thanks

  Sital

   

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  Cristabelle Metcalfe

  • March 08, 2018 00:00

  Hi @Sital Hirani​,

   

  You will need to add the employee as a leaver, and put them back on the payroll for a final time. The refund should then be processed on an OT W1 basis, and they will not appear on subsequent payrolls.

   

  If it was just to be paid out, it it would be taxable income, which is incorrect.

   

  Please see the link on useful information around how to process leavers.

   

  https://fc.force.com/customer/s/article/How-to-Add-a-Leaver-After-a-P45-Has-Been-Issued

   

  Thanks!

  Cris

  Fourth

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