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May 23, 2026
Question

I need to refund an employee as they opted out of the pension scheme. Do i add together the employee and employer deductions?

  • May 23, 2026
  • 1 reply
  • 3 views

Do i add together eployee and employer pension contricutions to process a refund to an opted out employee?

1 reply

QuickBooks Team
May 23, 2026

No, do not add the contributions together. You only need to refund the employee's pension contributions. Employer contributions are not refunded to the worker and are retained by the business.

 

If you use PensionSync, opt-outs handle themselves automatically. Otherwise, you can manually opt an employee out by doing the following:

 

  1. Navigate to All apps, click Payroll, and select Employees.
  2. Choose the employee that you want to opt out of the pension scheme.
  3. Under Pay Run Settings, select Pension Settings.
  4. Click Opt-out of this pension scheme.
  5. Enter the exact opt-out date provided by the employee/pension provider.
  6. Click Yes if you would like to refund the employee's pension contributions. (Please know refunds should only be applied within the opt-out period.)
  7. Hit Set and then Save.

 

For detailed information, see this article on managing workplace pensions: Set up and manage workplace pensions in QuickBooks Advanced Payroll.

 

Please don't hesitate to leave a post below if you still have follow-up questions and need further assistance.