Most people will have heard of the Workplace Pension by now. According to the Department for Work and Pensions, over 7 million have already been enrolled onto the scheme by their employers. If you employ staff, even just one or two, it is time to act to make sure eligible workers are enrolled. It is not just businesses that are affected. Anyone who employs someone to work for them for directly, such as a nanny or cleaner, is required to make sure applicable workers are enrolled by October this year.
So when does automatic enrolment apply?
Employees should be enrolled if:
-They are not enrolled in workplace pension scheme already
-They are between 22 years old and the State Pension age
-They earn more than £10,000 per year
-They work in the UK
What is required?
They are minimum contribution rates for both employers and employees, which will rise incrementally over the next few years. Before April 5 2018, the minimum contribution an employer can make is 1% with worker contribution also set at 1%. For the following tax year (April 6 2018 – April 5 2019), the amount will increase to 2% for employers and 3% for members of staff. Then from April 6 2019 onwards the contribution rises to 3% and 5% respectively, meaning a combined overall minimum of 8%.
If you are one of the many businesses or employers who do not currently have a workplace pension scheme up and running it is important to start thinking about this. Setting up the system can be time consuming as well as costly, so it is necessary to start taking the steps towards implementing now, rather than putting it off any longer.
To find out more about the Workplace Pension could mean for your business in Leeds simply call 0844 879 7286 to speak to one of our friendly team.
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