Auto Enrolment - the biggest change to pensions for 100 years
Auto Enrolment is a government initiative to encourage more people to save for retirement through a workplace pension scheme.
What is Auto-Enrolment?
Auto Enrolment is a government initiative to encourage more people to save for retirement through a workplace pension scheme. Unlike in the past when businesses might not offer a workplace pension, or workers didn’t join, Auto Enrolment requires employers with at least one member of staff to set up a scheme, and for all eligible workers to be joined up unless they specifically choose not to.
You might be struggling to understand what is needed, let alone to choose a pension scheme and get it up and running. As an employer, there are a number of things that you must do. They mainly involve making sure that the right workers are enrolled, that they and you as an employer pay the correct amounts into their pension promptly, and that at the right time, your employees are given the correct notices and opportunity to join.
What are my obligations?
New auto enrolment legislation means all employers must offer workers a workplace pension. Let Husky help you through your obligations.
Who do I need to offer a workplace pension to?
Although it is a complex area, workers who earn more than £10,000 p.a. and are aged between 22 and 65 years old will have to be, in most circumstances, offered a pension.
In fact The Pensions Regulator defines several categories of worker and the criteria for eligibility may change for a variety of reasons.
For seasonal and part-time workers, eligibility may change from one payroll to the next. Every scheme managed by Husky gets all workforce re-assessed every time you run payroll, so as a business owner you don't have to try and work it out for yourself.
Still not sure?
Use our Staff Eligibility tool for free to work out which of your employees are going need to be offered a workplace pension.
What to know?
- fiber_smart_record Even some part-time workers may need to be offered a pension.
- fiber_smart_record Make sure you know who counts as a contractor, and who is considered an employee.
- fiber_smart_record Workers can opt-out of the pension but it must be their decision.
- fiber_smart_record Need any further clarity? Call us on 08000448114.
How much will an auto enrolment pension cost my company?
When trying to estimate the costs of setting up and running a workplace pension scheme you'll need to consider all of the costs associated with it.
Contributions that the company needs to make can be estimated from the salary levels, number of staff, and the rate you elect to contribute (minimum 1% rising to minimum 3% by April 2019)
To work out the total costs you will also have to consider any pension scheme charges, and any additional adviser costs you may need to help you manage the scheme.
Use the contributions calculator to work how much your company contributions are likely to cost.
What to know
- fiber_smart_record For employees who require a pension your company legally has to make a 1% contribution of your employees' salary.
- fiber_smart_record This 1% figure will rise to 3% in 2019.
- fiber_smart_record There are usually setup fees as well as ongoing management costs with pensions. These cost can vary considerably. Husky can show you all of these costs.
- fiber_smart_record Some pensions are cheap to set-up, but have higher annual fees costing more overtime.
When do I need a pension set up by?
You must have a valid scheme in place by your Staging Date. This is the date set by the pensions regulator and is different for each company.
Your staging date will have been notified to your business by The Pensions Regulator. You also look it up easily by entering your PAYE Reference in our free Staging Date Lookup tool.
What to know
- fiber_smart_record You need a workplace pension in place by your staging date, as set by the Pensions Regulator.
- fiber_smart_record Failure to have a compliant pension scheme in place may lead to a fine of up to £500 per day!
- fiber_smart_record By postponing your staging date you could delay the need for a pension scheme by up to 3 months.
- fiber_smart_record To get the best pension be sure to start the process of choosing a pension as soon as possible. Some pensions take longer than others to set up.
How can Husky help my company?
Husky Auto Enrolment is a workplace pension service designed specifically for small and micro size employers. The service allows small businesses to compare pension providers based on their specific needs.
The service takes care of the ongoing administration required to assess a workforce accurately, calculate contributions, and ensure small business schemes remain compliant at every payroll with the lowest effort possible.
We consider ourselves pension experts so you don't have to become one yourself.