In the U.K. it is a requirement for an employer to automatically enrol their employees into a workplace pension. You can opt out if you want to, however the employee must be given the option first via auto enrolment. This category represents the total employer contribution you have paid in pensions for the company's staff members and its directors. The amount will come straight from our pension integration if you are using payroll.
Extra employer contributions in to funds for your employees such as Aviva, PensionBee, Scottish Widows or Royal London.
What's not included
Employee pension contributions - These are picked up in your gross employee wages.
National insurance payments are not to be categorised here, nor are PAYE or other payments of tax.
How is it taxed?
As of April 2019, the minimum contributions for the work place pension increased:
Up until 5th April 2019 - Employer minimum contribution = 2%, Staff contribution = 3%
6th April 2019 onwards - Employer minimum contribution = 3%, Staff contribution = 5%
All salary, pension, bonus and NIC payments must be made within 9 months of your year end to qualify for tax relief. Where they are not, then the deduction can only be taken when they are paid.