Automatic Enrolment can be a very tricky task to start let alone maintain. An employer has enough responsibility and many things to remember; to add another task on top of that can be overwhelming. That’s where we come in; we’re here to try and make Auto Enrolment as easy as possible for you, to explain it in simple terms and give you some little tips and tricks to make your life that little bit easier. Presuming that you know what a work place pension is we shall get straight into it. However, if you’re unsure then we explain it all in our previous blog post.
What applies to me?
An employer must provide a pension scheme if their employees are aged between 22 and the state pension age. Also, if employees earn over £833 per month a pension scheme must be provided. If these don’t apply to yourself or your company, then you do not have to provide a pension scheme but there may still be some responsibility that comes along with it. There is an online duties checker which can be used to find out all of your own legal requirements. Still not sure what you need to do? Give us a call and we’ll talk you through it.
All employers should have been given a staging date as to when they’ll need to enroll. The staging date is based off the number of employees in the company’s largest PAYE Scheme. The staging date can also be dependent on what PAYE scheme the business uses. It is possible for an employer to bring forward their staging date if they wish to do so for financial purposes and to match with their financial calendar. For an employer to bring forward their staging date they must know what their original date was which can be found out here. The employer must then notify The Pensions Regulator in writing (may include email) of their original staging date and what date they would like to change this to. This may also be done through the online portal which can be found on their website.
Choosing your Pension Scheme
Once the employer is satisfied with when their staging date is; then they can now decide which pension scheme is best suited for them and is suitable for automatic enrolment. This should be done around 6 months before your staging date. You may already have a pension scheme in place therefore you can check this one to see if it applies to the regulations. Employers can attain advice on what scheme may be best suited for the company and their employees. Employers must then enrol employees who are eligible for this scheme and then arrange a membership for certain workers.
Once the pension scheme has been selected, its best for the employer to contact who offers this scheme and to find out about what they’re offering and ask any questions or queries such as; how it is set up. Employers will also need to send data to the pension scheme so that the process can begin.
Within six weeks of the company’s staging date, as an employer, you are obligated to personally write to all staff members about Automatic Enrolment and how it will apply to them.
Once all the previous steps have been completed all employers must declare their compliance. This will consist of stating how an employer has met all their legal duties and must be completed within five months after a company’s staging date.
Regardless of your business size, or your staging date we are here to help by providing you with the best option, and great service. If you are ready to start your company’s Auto Enrolment process contact us today.