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Solving Pension Auto-Enrolment
What is automatic enrolment?
The initiative has been implemented by the Government, meaning employers are legally required to help their employees save money for when they retire. Eligible employees should automatically become a member of a qualifying workplace pension scheme.
What does this mean for employers?
As part of this initiative, companies with one or more employees are required to take on some new responsibilities. These include: workforce assessment, provision of a qualifying auto-enrolment scheme, facilitation of pension opt-out and record keeping. The scheme is regulated by The Pensions Regulator. Employer contributions to pensions will be 1% of qualifying earnings until September 2017, 2% until September 2018 and 3% from October 2018.
Which employees does this apply to?
Any employee needs to be enrolled on to the scheme if they are aged between 22 and state pension age, earning more than £10,000 per year and working in the UK. Note that if you have workers who are paid by an agency, you must ensure that the agency is taking responsibility for pension auto-enrolment.
Why is it important to register my business?
The first issue to consider is some companies underestimate the amount of time required to set up the auto-enrolment process. The Pensions Regulator recommends 12 months, so make sure you allow enough time to initiate the process. The second issue are the penalties for missing deadlines or failing to pay contributions range from £400 to escalating notices of up to £10,000 per day. Also, in order to evaluate your workforce, you must make sure your employee database is up to date with information on their age, earnings and opt-out preferences.
How can I initiate the auto-enrolment process for my business?
At Westwaters, we provide packages to look after the pension auto-enrolment process for your business, leaving you with one less thing to worry about and the relief of knowing your compliant.
Package 1: 1-5 employees £300+VAT
Package 2: 6-10 employees £400+VAT
Package 3: 11-20 employees £500+VAT
Make sure your business is compliant, get in touch today.
How can we help?
We are a proactive firm of accountants who can assist you in all your financial needs in a friendly, efficient and professional manner.
Building partnerships, listening to your needs, and implementing a solid financial strategy is the backbone of our practice.
Copyright, Westwaters Chartered Certified Accountants & Registered Auditors 2014. Accountants Durham