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Work Place Pensions & Auto Enrolment

Everything you need to know

One of the major challenges facing owners of businesses is the new auto enrolment pension legislation. You may by now have received a letter from the pensions regulator, asking you to nominate a contact from within your business. Ignore this letter at your peril, as the pension regulator can and will enforce fines against non-compliant businesses.

Failure to comply with a statutory notice could leave you facing a £400 fine, and daily fines of between £50 and £10,000. Failure to pay contributions could result in fines up to £50,000.

What is automatic enrolment?

Automatic enrolment will place new responsibilities on you and your business to automatically enrol your workers into a workplace pension scheme. This will entail:.

  • Assessing the types of workers in your business.
  • Providing a qualified automatic enrolment pension scheme for the relevant workers
  • Writing to all applicable works outlining what automatic enrolment into the workplace pension will mean for them.
  • Automatically enrolling all eligible jobholders into the scheme and paid employee contributions.
  • Registering with the pensions regulator and be responsible for keeping records.
When does automatic enrolment apply to an employer?

The law came into force for very large employers on 1 October 2012 but fortunately, the automatic enrolment rules have a staggered implementation by reference to the number of employees.

Who will be automatically enrolled?
  • Employees who work full or part time if they are not already in a stable workplace pension scheme.
  • Are at least 22 years old but under state pension age.
  • Earn more then £10,000 a year
  • Work in the UK
When is my Staging Date?
  • The staging date is linked to your PAYE reference number. For businesses who are registering for payroll now the staging date is 1st August 2017. You can also click here link to find out, you will need your PAYE reference.

What is auto enrolment going to cost me?

Over the next 18 months all businesses will be required to provide auto enrolment. As part of this programme employers must contribute as well certain %s of pensionable earnings. For each eligible member of staff employed a percentage of their salary must also be paid, as indicated below.

Charges until April 2018

%

Employer Pays

%

Employee Pays

%

Government Pays

%

Total

Charges until April 2019

%

Employer Pays

%

Employee Pays

%

Government Pays

%

Total

May 2019 onwards

%

Employer Pays

%

Employee Pays

%

Government Pays

%

Total

We are now in a position to be able to register you onto our auto enrolment system that will take care of your duties from your staging date. This will enable us to ensure that you are ” at the front of the queue” when your staging date arrives, as there will be tens of thousands of employers “going-live” at a similar time to you.

It generally takes 6 months to get a scheme up and running, so get in touch now! If your staging date is sooner we can offer a fast-track service.

For further details regarding the setting up of your work place pension scheme click here

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