What is automatic enrolment?
UK employers have to automatically enrol their staff into a workplace pension if they meet certain criteria. The law on workplace pensions has now changed and every employer must comply.
When does auto-enrolment start?
Please contact us with your PAYE reference and we can help to find your auto-enrolment date. The responsibility for complying with these duties rests with you, the Employer.
Can you delay?
There is the option to postpone enrolment for three months after the staging date. But people have to be allowed to opt in from the staging date so you’ll need a scheme in place by then.
Does it include all staff?
If you are the Directors and only employees of a limited company, You’re one of the few classes of worker who do not have to be automatically enrolled into a workplace pension scheme, although you can still decide to set one up if you wish.
If you employ staff then any employee aged over 22 (and under state pension age) has to be enrolled automatically if they earn more than the equivalent of £9,440 a year. This “earnings trigger” will increase to £10,000 for 2014-15. This will include those on part-time, temporary and casual (or zero-hours) contracts. Those earning less than the trigger are entitled to join.
How much do you have to contribute?
Employers and employees must at first contribute 1% of “qualifying” earnings (between £5,668 to £41,450 including commission, overtime, and bonuses). This rises in stages until, by 2018, a total of 8% is paid in, with employers paying at least 3%. One or both can pay more if they wish.
How do employees opt out?
Employees must make an active decision to opt out. If they do they will be re-enrolled by their employer every three years.
What if you miss this deadline?
Firms will face statutory fines, which can be as high as £10,000 a day.
Who do I contact?
Contact us on 01202 888066 or email@example.com for more information.