If you employ staff, you will know all about auto-enrolment, for businesses that may be thinking of employing staff its essential to understand your obligations.
Auto-enrolment is a workplace pension scheme that all employers in the UK must offer to their employees. Employees do have the opportunity to ‘opt out’ if they choose to. The scheme is set up, so there is a contribution from the employer and the employee each month which goes to towards the employees’ pension.
If an employer does not have a workplace pension scheme in place, they will be fined by The Pensions Regulator.
We wanted to let you know that in April 2019 the auto-enrolment contributions are increasing. It’s important for employers to factor this increase into the monthly expenditures.
Below are the minimum contributions you must pay and the date when they must increase:
Date
Employer minimum contribution
Staff contribution
Total contribution
Current Rate
2%
3%
5%
New Rate
8%
If you have a workplace pension scheme in place that offers more than the minimum contribution, then you will be fine.
However, if you are paying the current minimum rate then by law, you must make sure that you take the increase into account on 1st April 2019. You, the employer, must make at least the minimum employer contribution towards this amount and your staff member must make up the difference.
We manage payroll for many of our clients so we will be advising them of this change. If you have not factored this change into your scheme, then you need to make sure this happens on time and inform your staff of the increasing contribution that will be taken from their salary.
If you have any queries about payroll or auto-enrolment, please do not hesitate to contact us by calling 01623 490 120 or email This email address is being protected from spambots. You need JavaScript enabled to view it..
Haidee is our Personal Tax Director and is a fully qualified tax adviser, having achieved the ATT qualification in 2006. Tax efficiency being her main concern. Specialising in taxation, Haidee provides clients with advice on personal tax, PAYE services, VAT and social security. She also provides guidance to new start-up businesses.
Call us today on01623 490120
or email info@watsonk.co.uk
When you first start a business, your focus is usually on attracting customers, generating sales and building a successful company. Few business owners spend much time thinking about how or when they will eventually leave the business.
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