For many small employers the administration of payroll is about to become more complicated and time consuming. Auto Enrolment will require any qualifying employees to be enrolled in to a qualifying company pension scheme. Once enrolled the employee and the employer will make contributions based on a percentage of their salary. By 2018 this will be a combined 7% deduction which after tax relief will contribute 8% of the salary to the employee’s pension.
The criteria for your employees is descriptive, however, in some cases employees outside of the automatically enrolled group have the right to join the pension scheme.
Your number of employees will determine the date when you will be required to comply with the new legislation. This staging date for your company is available from The Pension Regulator using your PAYE reference number.
Our advice is to prepare in advance for the new rules and use a qualified Independent Financial Advisor to help you set up a pension scheme.
To assist you with your obligations our Payroll Service will automatically calculate your deductions for qualifying employees.