You may have received a letter from The Pensions Regulator telling you about Auto Enrolment. This means that you will be law need to provide your employees with a workplace pension, unless they don’t want one.
What do you need to do?
- Ensure that you have a workplace pension set up before your Staging Date – the date at which you need to provide a workplace pension by law. Your Staging Date is 1 January 2016. You will need to enrol your employees onto the workplace pension scheme between 1 January 2016 and 1 April 2017.
- If you already have a company pension scheme in place, check that this qualifies. It will save you having to set up another scheme.
- Tell your employees about Auto Enrolment, and the company’s pension scheme.
- Find out which employees are affected – depending on their age and income they might not have the right to join automatically, but may be entitled to opt in.
- Automatically enrol your staff to the scheme. Employees may elect not to be enrolled, however it is against the law to take any action to induce staff not to opt in.
- Maintain accurate records of scheme members and review employee eligibility at each payroll date.
- Ensure that any pension contributions deducted from their salary are paid to the scheme provider on time.
You are a contractor, will this affect you?
- If the company only employs one person, who is Director, the company will not be affected.
- If the company takes on a second employee, both the Director and the second employee may be eligible.
How can we help?
The Accountancy People will be happy to assist and advise you throughout this process. We will be able to:
- Review your employees’ eligibility to join the scheme
- Check whether your existing scheme qualifies for Auto Enrolment
- Maintain your employee records and review their eligibility for Auto Enrolment on a monthly basis.
Please contact a member of our team for further information.