The new pension laws now mean that every employer with at least one member of staff must automatically enroll those who are eligible into a workplace pension scheme and contribute towards it.
You are likely to have a received a letter from The Pensions Regulator showing your staging date (when this has to be in place by). If not you can visit www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx and enter your PAYE reference to find out your date. The plan must be in place by this date and can be set up well in advance with contributions starting straight away or from your staging date.
From your staging date to 30 September 2017 the minimum contributions made by both you and the employee are 1%.
From 1 October 2017 to 30 September 2018 the minimum is 2% by you and 3% by employee
From 1 October 2018 onwards the minimum is 3% by you and 5% by employee
These figures are minimums, you or your employees can contribute more if they wish. Deductions and calculations would be dealt with through your payroll and contributions made by direct debit.
Who are eligible employees?
Every employee you have who meets the following criteria must be offered the chance to join the scheme.
• are aged between 22 and State Pension age
• earn more than £10,000 a year
• work in the UK
Eligible employees can choose to opt out if they do not want to contribute. A record of this must be kept. The pension scheme will still need to be set up in case they choose to opt back in or you take on new employees.
Leggatts Financial Services can assist in the setting up of this. A fee will be agreed with them based on the level of work involved and the number of employees you have.
This is a mandatory legal requirement which will be enforced.
If you would like us to help you with this please do contact us.