Childcare Vouchers

I've been looking for an answer to this too. So far I have added a new payroll item - a deduction as per another post on this topic but I am unsure if i have done it correctly. Quickbooks support incorrectly told me to create a new 'attachment of earnings' item but it isnt a court order so I have dismissed this 'solution'.

Somebody must know what to do correctly??

Hi, I follwed another persons post where it said:

I created a new payroll item in the following way:

• Payroll Deduction - named Childcare Vouchers
• Pension Contribution = No
• Agency for employee-paid liability = Name and Ref No of agency, Liability Account = I created a new 'Other Current Liability' account called 'Childcare Voucher Scheme'
• Tax Tracking Type = None
• Taxes = ALL accounts selected (ticked except student loan deductions)
• Calculate Based on Quantity = Neither
• Default Rate & Limit = Rate of £124.00 (we pay monthly & its a higher rate tax payer), Upper Limit = Blank and the 'This is an annual limit' checkbox left UNchecked

This appears to reduce the gross pay by the £124 & so the NICs are based on the lower gross pay. I spent 40mins on the phone to the support team going through this & confirming it so it has worked for this month I just hope it will continue to work.

When paying for the childcare the liavility appears in the pay payroll liability screen so these need to be paid before paying PAYE/NICs to HMRC.

Hope this helps