Help with query regarding company Pensions
columbia
Registered Posts: 580 Epic contributor 🐘
Hi
Can anyone help me out please?
The director of the company I work for also has his wife working here. He wants to know if all her wages for the next few weeks can be paid directly to her company pension plan, if so will she have any other deductions on her earnings ie NI/Paye.
I know nothing about pensions, and only the basics as far as payroll is concerned, so any advice gratefully received.
Thanks
Tracy
Can anyone help me out please?
The director of the company I work for also has his wife working here. He wants to know if all her wages for the next few weeks can be paid directly to her company pension plan, if so will she have any other deductions on her earnings ie NI/Paye.
I know nothing about pensions, and only the basics as far as payroll is concerned, so any advice gratefully received.
Thanks
Tracy
0
Comments
-
What type of the pension?
You do not mention what type of company pension you have.
If it is stakeholder pension, you can make up to 100% of your earning. This needs to come out of employees net pay. So employee would pay Tax and NI, then remaining amount you can pay into stake holder pension plan.
Once you pay contribution, pension provider will claim basic tax credit. So if you pay net £800.00, pension provide will claim and receive £200.00 from HMRC. Altother £1,000.00 will be invested in pension plan. This may obvious, I thought just mentioned them here.
If an employees is higher rate tax payer he/she have to claim remaining 20% tax relief from HMRC (may have to file tax return).
So emoloyees, initial pay Tax and NI, but they would get tax back but not NI.
Hope this helps.
Nilesh0 -
Thank you for your concise reply Nilesh.
It is a stakeholder pension plan. I will now go back and let the boss know that we have to run payroll with normal ni and paye deductions, but we can transfer the net pay over to the pension scheme.
Thank you so much :-)
Tracy0 -
Pension
Please do not take pension lightly. If you have got stake holder pension scheme, then you should have a financial advisro. You should speak to them. Who would be able to give you proper advise based on individual's circumstances.
Nilesh0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.5K For AAT students
- 321 NEW! Qualifications 2022
- 164 General Qualifications 2022 discussion
- 11 AAT Level 2 Certificate in Accounting
- 56 AAT Level 3 Diploma in Accounting
- 87 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 272 VAT
- 92 Software
- 273 Tax
- 135 Bookkeeping
- 7.2K General accounting discussion
- 200 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 582 Job postings
- 16 Who can benefit from AAT?
- 36 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership