The error message is caused by a negative pension year-to-date figure for an employee. The most common causes of this are;
Refunding pension contributions from a previous tax year.
Pension refund is processed under a different pay element than it was deducted from.
The refund is greater than the employees' contributions in the tax year.
To find and correct this, follow the steps below.
Find the employee generating the error.
Click Payroll, and then click Employees.
Click Standard Pay, and select the pension refund pay element.
Click Open Pay Element.
Pension refund from a different pay element
If the pay element being used for the refund is different to the normal pension pay element, ensure the refund pay element has the same PAYE and NIC checkboxes selected.
Refund greater than contributions
At the bottom of the pay element, there is a gross year-to-date figure. If your refund is greater than this figure, you will need to amend it.