UK Payroll - Option to opt out before pension included in payrun
Please can we have the option to opt an employee out before running a pay run? It is a bit annoying to have to then refund deductions the following month and employees question it as they think they have opted out!
Alison Tugwell
shared this idea
-
Gael Beddoes
commented
I see the comments here about the requirement for auto-enrolment. Our pension provider covers all auto-enrolment duties, and so there is no need to duplicate this work in xero. The problem for us arises as the pension provider assesses in one month and then commences contributions the following month, allowing the employee ample time to opt out before contributions are taken and therefore never having to process refunds. As they are one of the largest UK providers I assume their system is compliant for all UK payroll and tax legislation.
Xero will then try to assess and deduct in the same month, leading to a discrepancy with the pension system. It should be possible to tick a declaration box stating that auto-enrolment is being completed outside of xero and send that to HMRC if necessary, and then opt out of auto-enrolment in xero altogether, and set up contributions via the payslip items as usual when needed. -
Martina Ford
commented
it's a good idea but legally not possible unfortunately! I just spend ages trying to refund the money but found it hard to set it up so HMRC accepted it. Ended up having a phonecall with XERO to talk me through it
-
Helen White
commented
Hi Alison, just a comment here as I see your question.
Unfortunately the legislation states that an employee has to be enrolled and registered with the pension provider before they can then opt out. That is not something that Xero are only insisting on.