What is Auto enrolment?
The government has introduced new pension legislation which means that all employers are legally obligated to enrol certain employees into a pension fund.
For many small and medium sized businesses auto enrolment is being introduced over the next couple of years with staging date in 2016 and 2017.
Key facts of auto enrolment
- All eligible employees must be enrolled into a qualifying scheme
- All employers must register the scheme with the pensions regulator and must maintain administration records. It is the employers responsibility to administer the scheme and ensure that
- All eligible workers are opted in and out of the scheme if and when their eligibility status changes
- Correct employee contributions are deducted from the employee and paid to the pension provider together with the correct employer contributions
- In addition to the administration burden of implementing the above there will also be the financial burden for the employer, the hard cost contributions are as follows:
- Year 1 – 1% employer and 1% employee contributions
- Rising to 3% employer and 5% employee at the end of the staging process
How can we help?
Outsource your payroll to us
We have a fully functional payroll bureau which is also capable of meeting all your auto enrolment compliance obligations, our bureau is able to:
- Assess all your staff for eligibility (not all staff will necessarily need to be enrolled.
- Calculate your correct monthly pension costs so you pay the correct contributions
- Monitor employee ages and earnings so you ensure that they are treated correctly
- Process Opt-in requests and joiners
- Process Opt-out requests
- Assist with re-enrolment
- Ensure that records are maintained and updated