If you are running your own PAYE payroll for your employees or entrusting your accountant or other third party to provide this, you need to be aware of your pensions re-enrolment obligations.
Back in 2012, less than half of private-sector employees in the UK had a pension scheme. Today that figure has grown to 85% as a result of the successful rollout of auto-enrolment.
It started with the largest companies and now applies to employers of all sizes with staff earning more than £10,000 p.a., and who are aged between 22 and state pension age. This compliance can cause challenges, particularly for smaller employers, as they don’t have a large payroll department to manage it.
As an employer you must:
• Offer a compliant workplace pension to eligible employees
• Tell a new worker about the scheme, how it operates, how they can join and whether you operate any postponements
• Assess your employees’ earnings at the start of the scheme and then at every pay period to determine whether any of them should be auto-enrolled into the pension scheme
• Make appropriate deductions and employer contributions every month and pay them into the scheme
• Inform the Pensions Regulator about your scheme
• At the third anniversary of setting up a workplace pension scheme, you must:
• Re-enrol anyone who has opted out but meets the threshold for auto-enrolment
• Submit certain data to the Pensions Regulator about your workforce
These responsibilities start as soon as you employ anybody eligible for a workplace pension.
You can postpone auto-enrolment for up to three months, which can be useful if you employ temporary staff. You can also postpone an employee if they have handed in their notice or if someone has a spike in their normal earnings.
There is guidance on the Pensions Regulator website about choosing a scheme, operating a workplace pension, re-enrolment responsibilities, and the fines and legal action for non-compliance (www.thepensionsregulator.gov.uk)
If you are interested in discussing support for payroll, pensions and re-enrolment please contact Elly Rose on email@example.com