Are you ready for Auto Enrolment?
Since 2012, employers have been required to automatically enrol all eligible jobholders into either the National Employers Savings Scheme (NEST) or an alternative ‘qualifying’ or ‘certified’ workplace pension - and to make minimum contributions into it.
The process is being staged, dependent on employee head count, from 1st October 2012 to 1st September 2018, with large employers being the first to have to take action.
All jobholders working in Great Britain aged at least 22 years old who have not yet reached State Pension age and are earning more than £11,000 a year (the income tax threshold at 2016/17) will need to be automatically enrolled into a qualifying pension scheme.
What should I be doing now?
As an employer, you should ensure you understand the changes. You will be contacted by The Pensions Regulator at least 12 months prior to your staging date to give you plenty of time to review your workforce and get a pension scheme in place.
A review is also important as The Pensions Regulator, who will oversee the implementation process, does carry the power to levy fines of up to £50,000 on employers who do not take action.
You must have a pension scheme in place and ready to go as soon as your staging date arrives to avoid penalties. If you are uncertain about setting up your pension scheme you should talk to an Independent Financial Advisor (IFA) for advice and we can signpost you to one if required.
How we can help
Once you have chosen a pension provider we can help you:
- Work out which of your staff are eligible for the scheme.
- Communicate the options to your staff.
- Enrol them onto the scheme and advise you on deal with those that choose to opt out.
- Process your payroll, calculate the pension contributions and communicate with your chosen pension provider.
- Complete a declaration of compliance.
- Advise you on the the amounts to pay to the pension company
If the burden of this administration concerns you, we can help.
We have a cost effective, fully integrated payroll and auto-enrolment system ready to take care of this new regulatory requirement for you. Contact us today for more information on how we can help you.
Click here for details of our Auto Enrolment Service.