Want to know what your duties are when it comes to Auto Enrolment at your business? Artema Accountants in Bournemouth and Ringwood can assist with this.
Auto Enrollment is a requirement for UK companies to offer their staff a workplace pension.
Businesses must set up their pension arrangement after their first qualifying employee starts work, typically this doesn’t include directors. This is known as the duties start date, and can be postponed by up to three months. This can help account for if new starters are working a probation period, but you must inform them of the postponement.
You must automatically enroll employees who are over 22, and earning over £10k perannum into the scheme. If they do not wish to stay in, they can ‘opt out’, which means they simply are not included in the pension scheme – this must be documented and not encouraged by the company in any way.
The contribution levels are 8% of qualifying earnings, with the employer paying at least 3% -but this can be higher. Alternatively, companies can use basic salary.
If an employee doesn’t get automatically enrolled as they are not eligible, they are able to’opt in’ at any time and the employer must pay the required contributions.
Also, every three years there is a process known as ‘re-enrollment’ where all eligible employees who are not in the pension scheme are enrolled again.
Want to know what your duties are – contact Artema to find out now.
This post was made specially for Artema, goal centred accountants by The Money Movement.