Auto Enrolment – are you ready?
What is automatic enrolment?
The law on workplace pensions has changed. Every employer with at least one member of staff now has new duties, including enrolling those who are eligible into a workplace pension scheme and contributing towards it. This is called automatic enrolment.
It is called automatic enrolment because it is automatic for your staff – they don't have to do anything to be enrolled into your pension scheme, but it is not automatic for you. You need to take steps to make sure your eligible staff are enrolled into a pension scheme. Even if you already pay contributions into a pension scheme for your staff, you still need to check if it is suitable for automatic enrolment.
The following tasks in particular will take you some time:
- setting up a pension scheme
- enrolling your staff into the pension scheme. Contributions to the scheme come from three places. You will make deductions from their pay, you will make employer contributions and the government will contribute via tax relief. You'll need to make sure you contribute the right amount
- once you've completed steps 1-10, you'll need to report how you've met your automatic enrolment duties by completing a declaration of compliance
Ideally, you should allow up to 12 months to prepare. Remember, automatic enrolment is your legal duty and if you don't act you could be fined.
Going it alone
We’ve all seen the adverts on television and you may wish to set up the Pension Auto-Enrolment yourself but you will need to answer the following before you can start For example….
- Do you know what your staging date is?
- Is your current pension provision compliant?
- Do you have a plan for implementing soon?
- Have you communicated these changes fully to your employees?
- Do you know how much auto-enrolment will cost your business?
- How are you going to identify employees eligible for auto-enrolment each pay period?
- Are you aware of the legislation involved and penalties for non-compliance?
How can Casson Beckman help you?
Alternatively you can instruct us to do this for you.
At Casson Beckman, our team will be able to help you answer these questions and point you in the right direction. Our payroll software is fully compliant with auto-enrolment. Using your payroll data, we can help you keep track of your employees each pay period, so if their situation changes and they become eligible to join the pension scheme, we will be able to advise you accordingly.
GET IN TOUCH NOW TO SEE HOW WE CAN ASSIST YOU