15 Dec Auto Enrolment
A new law means that every employer must automatically enrol workers into a workplace pension scheme if they:
Are aged between 22 and State Pension age
Earn more than 10,000 a year
Work in the UK
It is called automatic enrolment because it is automatic for your staff – they don’t have to do anything to be enrolled into your pension scheme, but it is not automatic for you. You need to take steps to make sure your eligible staff are enrolled into a pension scheme. Even if you already pay contributions into a pension scheme for your staff, you still need to check if it is suitable for automatic enrolment.
The last tranche of smaller companies are now having to face up to meeting the requirements of auto enrolment: if you have less than 30 employees you will have a staging (or start) date between June 2015 to April 2018.
Even if you don’t think you will have to make any different pension provisions you still need to demonstrate to the Government that you have met all your duties by making an online declaration of compliance.
What do you need to do?
Provide a qualifying workplace pension scheme to meet new legislation and carry out your duties outlined by the Pensions Regulator
Choose a pension provider that delivers a compliant, quality, cost effective pension scheme that meets your needs
Assess the eligibility of your workforce, provide mandatory communications outlining what’s happening and sign-up eligible employees to the pension scheme
Each pay period manage your payroll to ensure employer contributions and employee contributions, if required, are made
Keep detailed records of employees, your communications to them and their choices
Who is eligible?
Not all your employees will be eligible to join your workplace pension scheme. It will depend on their age, how much they are paid and if they already have a pension that you contribute to.
If you don’t have any staff other than directors you may not have any auto enrolment duties – it will only apply if you have more than one director with an employment contract.
How can we help?
The new regulations are proving a complicated burden for small businesses, many of whom outsource their payroll and don’t have an in-house pensions or HR specialist, but ignoring the problem will not make it go away and may lead to fines of up to £500 per day
We can take the whole burden of pensions auto enrolment off your shoulders.
We’ve chosen a trusted auto enrolment solution for you that takes care of the entire process.
Our preferred provider is Creative Auto Enrolment (CAE), chosen because they provide a complete, end-to-end solution, meaning all the preparation, pension and implementation is taken care of for you.
When we sign your business up to CAE they will:
Help you establish your staging date
Calculate your postponement period
Provide the pension, all the auto enrolment setup, the administration and your employee communications
Provide a dedicated Helpline for you and your employees
More important reasons why this is the most effective auto enrolment solution for your business:
No need to upgrade or change your existing payroll software or processes
The scheme includes a pension that invests in funds managed by Scottish Widows - one of the UK’s most trusted Life, Pensions and Investments providers
Handle your Declaration of Compliance
Please contact us for more information and to sign up for this service. Charges are based on numbers of employees in your business.
You can also download this free guide to learn more about auto enrolment and the solution we provide:
If you don’t know your staging date you can check by going to the Pensions Regulator website – you just need your PAYE reference.