What is Auto-Enrolment?
Since 2012 the introduction of automatic enrolment has been rolling out and will continue to affect businesses across the country. These major changes to work place pensions has been made by the Government in a bid to help people save for retirement.
Unlike previous years, where it was up to employees themselves to opt into their employers pension schemes, it is now the legal obligation of employers. You must register those who meet certain criteria into a workplace pension scheme. Once enrolled the employer, employee, and the Government will make monthly payments.
Get Your Business Ready
Auto-enrolment doesn’t have to be a daunting task. In fact, if you make sure you are well prepared for your business’ staging date it should be a piece of cake. Make sure you know when your staging date is and don’t leave auto-enrolment until the last minute as it is not only stressful but guaranteed to make the process more complex and ultimately more costly.
This new law means that over the next few years every employer in the UK must automatically enrol their employees into a workplace pension. As an employer it is your responsibility to find out who in your business should be enrolled under the following criteria:
- Are not already part of a pension scheme
- Aged between 22 and state pension age
- Earn more than £10,000 a year
- Work in the UK
*State Pension Age
Failing to automatically enrol any eligible employees following the above criteria into a workplace pension scheme will result in a fixed £400 penalty, as well as other additional escalating fees for not complying with legislation.
Need a Hand?
Payroll software is an excellent source for helping you keep track of the ages and earnings of all your staff and will tell you what you need to do for each individual.
At First Call Financials we have invested in Pension Regulator approved payroll software which can ensure employers never miss a reporting deadline and always comply with their legal duties. If you already have your own payroll software you must make sure that it is programmed with the latest advancements and supports automatic enrolment.
For help and advice regarding auto-enrolment, as well as our full payroll services, give our team a call on 0117 379 0810 to arrange a free no obligation consultation.