Have you organised your staff pension enrolment?October 14, 2015 // No Comments
Automatic enrolment makes it compulsory for employers to automatically enrol their eligible workers into a pension scheme.
Automatic enrolment is being phased in with a staged process which will run until the end of 2017. Employers will have been given a date from which workers will be enrolled automatically. You can check your staging date here using your PAYE reference number.
Eligible employees will be those who:
- are at least 22 years old
- have not reached state pension age
- earn more than the earnings trigger
- work, or normally work in the UK
Once employers have enrolled in the scheme they have to pay 1% of workers qualifying earning which can be either the entire wage before tax or the amount on which workers’ pay national insurance contributions. Workers’ pensions will be made up of their contributions, employer’s contributions and tax relief and will be a percentage of the qualifying earnings. Staff may choose to leave or opt out of the pension scheme at any time, by signing an ‘opt out’ form. Find out more here.