Auto Enrolment Workplace Pension
The law on workplace pensions has changed. Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called 'Automatic Enrolment'.
Whether you’re a car salesman, an architect, a salon owner or employ a personal care assistant, if you employ at least one person you are an employer and you have certain legal duties.
It’s important that you understand what to do and by when, this will depend on your circumstances and those of your staff. EasyPAYE is able to take over the workload and manage your workplace pension duties for you.
The aim of auto-enrolment is to encourage individuals to save for their retirement and, under the regulations, all businesses will ultimately need to make a minimum pension contribution of 3% per eligible employee.
We have found that less than 1 in 5 small businesses have a pension scheme in place, and that only a small number of these businesses comply with the auto-enrolment requirements. For this reason alone, we recommend that employers start planning their workplace pension schemes at least 12 months ahead of their staging date.
What is my Staging Date?
The staging date for your business will depend on the number of eligible employees. If you have your PAYE reference to hand, you can find out your staging date here. (link to pension regulator website) Once you know your staging date you then need to make a plan to:
Assess your workforce for eligibility to calculate how much each should contribute and who is in and out of the scheme
Review your existing pension arrangements for suitability and compliance
Assess your payroll software for its suitability to handle contributions and deductions
Establish a clear communication plan for staff, including reviewing employment contracts to accommodate pension changes.
Our payroll software has the ability to manage the requirements for automatic enrolment and runs smoothly alongside our payroll duties. Again, like the payroll pricing structure, there are various ways in which we process automatic enrolment and would tailor this to your specific needs.
Contact us now for any pension auto-enrolment information and advice on the process.