Auto-Enrolment Newsletter – Update

By January 17, 2014Uncategorized

Workplace pension law has changed. Every employer in the UK will eventually be required to help their workers to save for their retirement. Employers will need to automatically enrol certain workers into a pension scheme and contribute towards it.

In very simplistic terms all of your existing employees and any new employees will be required to be a member of a compliant pension scheme, with the employer making a minimum contribution. There are exceptions based upon age and how much your employee is paid. An employee can opt-out from the pension scheme. Please be aware however that this is a very simplistic view of Auto-Enrolment and in practice it is far more complex.


When will this affect me? – Staging Dates

The Pensions Regulator has assigned all organisations a staging date for when they need to start Auto-Enrolment. The staging date is dependent on what the size of your organisation was in April 2012. To establish the staging date for your organisation please visit (you will require your PAYE reference number from the front page of your reports)

http://www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx

Once you know your organisation’s staging date it is then time to start preparing for Auto-Enrolment

 

How should I prepare for Auto-Enrolment?

The process of Auto-Enrolment is complex and as such there is a great deal of information available via The Pensions Regulator website (http://www.thepensionsregulator.gov.uk). If you already have a pension provider consider discussing Auto-Enrolment with them.

 

Can I get help?

We are working alongside a firm of independent financial advisers, NLP Financial Management who will ensure that you meet your Auto Enrolment obligations whilst removing the complexities involved. NLPFM can assist with all aspects of the process including explaining your obligation and the financial impact it will have on your business, sourcing and setting up the pension scheme and providing you with the necessary communication that you will need to issue to your employees. By working alongside Payroll Options, NLPFM will ensure that the process is as simple and easy for you as possible. In recognition of NLPFM’s range of services and client care, they have recently been named the Citywire ‘New Model Adviser Firm of the Year’ for Greater London.

To discuss Auto-Enrolment with NLPFM contact Chad Atwal, Tel: 0207 472 5541 Email: autoenrolment@nlpfm.co.uk

 

How can Payroll Options help?

Payroll Options have developed a number of tools to assist you with Auto-Enrolment.

 

  • Once your staging date has arrived we are able to perform the complex task of Auto-Enrolment Assessment of your employees with every payroll thereafter to see who should be added to the pension scheme.
  • Employees will be added to the Auto-Enrolment Pension scheme at the appropriate time once any postponement periods have passed and have contributions calculated.
  • We are able to provide to you with data containing details of employees and their pension contributions that your pension company will require you to provide to them.

 

Our charges will increase by 5% from your Staging Date to cover the ongoing increase in time required to prepare your payroll and the additional systems required for Auto-Enrolment.

Please remember Auto-Enrolment is not something that can be ignored –start your preparations now.