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Workplace pension contribution rates are set to increase from 6 April 2019. This means you will need to change the amount of contributions you pay for your workers.
The new rates are as follows:
Employer contribution up to 3%
Employee contribution up to 5%
What do you need to do next?
You will need to ensure you collect and pay the correct contribution amounts in line with the new rates. You will also need to inform your workers of this change. We follow guidance from The Pensions Regulator to ensure that all our clients are compliant. Easypaye aims to do the following:
Ensure everything is in place to process the increases
Ensure the payroll software is up to date and can account for these changes
Provide you with communications for your employees if necessary to explain the changes
The Pensions Regulator states that if your pay day is in the pay period that crosses 6 April 2019 but falls before 6 April 2019, then the increase can be deferred until the next pay date.
If the pay day falls on or after 6 April 2019, then the increase applies from the pay period that crosses 6 April 2019.
We will apply the new contribution rate to WHOLE EARNINGS PERIODS ONLY. This means you can avoid having to pay two contribution rates in one pay period.
It is important to ensure that you are compliant with current legislation, so let us help you get ready for the new rates!
Please visit The Pension Regulator site for more information, or give us a call and we can go through any queries you may have.