Pension filing errors
Pension filings - Submission errors
When an employee's employment is terminated and subsequently corrected due to the employee no longer intending to leave - pension contributions are no longer included in the pension filings even though deductions are made on the payslips. This results in an underpayment to the pension provider.
There is a work around suggested by the support team whereby a new employee profile is required - making the employee a leaver and then a joiner.
Gemma Briant
shared this idea
Hi Gemma, thank you for sharing your feedback on reinstating employees and how this impacts pension filings.
When an employee's leaving date is processed in Xero, the system sends an event update to both HMRC and the pension provider. Once this leaving date is processed, the specific employee record can no longer be opted into a pension scheme under that record, and they will cease to appear in filing reports.
Our product team has reviewed this workflow and confirmed that it is working as designed. This is primarily due to compliance and reporting requirements. HMRC guidelines mention employees should not be paid under an employment record once a P45 has been issued.
If you have marked an employee as leaving but have not yet posted their final payslip, you can simply reinstate the original record. This will prevent the "leaver" status from being send to HMRC and allow you to continue using pension filings.
If you need an extra hand you can raise a case with our Xero Support specialists. 😊
