The minimum contributions set by the government for auto-enrolment will increase again in April 2019 by law.
This increase will take the total minimum amount to 8% (with at least 3% from you as the employer). This is assuming you’re calculating minimum pension contributions on qualifying earnings.
If you work your contributions out another way, you might need to pay more – you can find out more on The Pensions Regulator’s website.
You may need to put in more than you currently do, unless you’re already paying above the minimum contribution level. And you’ll probably need to let your employees know they’ll be paying more too (assuming they will be).
If you’re unsure what the cost to your business will be then please contact Becci who will be happy to help on 01482 428010 or email firstname.lastname@example.org
Automatic Enrolment (or workplace pensions) is now being rolled out to employers of all sizes. This means an added admin and cost burden for anyone who employs staff as the employer has to pay into the employee’s pension.
It is vital a qualifying scheme is set up at the appropriate time and that the scheme is administered correctly as there are large fines for business’ that do not comply.
Here’s a diagram to help you understand the 6 key steps to AE:
As minimum employer contributions increase it is vital you establish by how much the cost to your business will increase. This may be difficult if you plan to take on extra staff as you will not know whether they will opt out or not so you may decide to base your calculations on a worst case scenario.
Current Auto Enrolment rates:
Year ended 5/4/18
Year ended 5/4/19
Year ended 5/4/20
Payroll can be complex and time consuming. 5four Payroll Services offer a bureau facility for processing your payroll and auto enrolment. Supplying you with reports, payslips etc. Contact us if you would like further details on 01482 428010 or email email@example.com.