Hi guys. I, as an employee, pay into a Pension. My company does not contribute. However, I see the Pension liability listed in the company accounts. If it is being paid directly by the employee, why would it be on the company accounts? Thanks in advance, Darren
Hi Darren, If you are paying your pension our of your gross wage, it may attract some tax. Since the company is responsible for collecting tax from it’s employees and sending it to revenue, it is a liability on the company until it has paid revenue the money it collected for it.