July 2016: Auto Enrolment for your business
Auto enrolment is the government-backed enterprise to ensure that people are saving for their retirement. Qualifying employees are now automatically enrolled into a pension scheme by their employers unless they specifically ask to opt out.
The Pensions Regulator is introducing this scheme to employers in phases, so a number of employees have already implemented the scheme and by 2018 all companies employing people will have to have auto enrolment measures in place.
To qualify for the scheme an employee needs to be:
- Living in the UK
- Aged between 22 and the state pension age
- Earning over £10,000 a year
As an employer you will have received or will soon receive a staging date. This is the first step towards auto enrolment. This is the date whereby your responsibilities start and gives you ample time to assess pension providers and discuss the process with your employees. There are a number of pension providers on the market from the government-backed Nest to other ‘high street’ names like Aviva.
We have found that the easiest way to manage your auto enrolment is to implement it alongside your usual payroll responsibilities. Read about how we have helped our clients with this process.