The Government wants to encourage more people to save for their retirement. It wants all employees to be automatically enrolled into a pension scheme if they are not already in a one. It also requires employers to contribute towards it.
FREQUENTLY ASKED QUESTIONS.
Who will it affect?
Anyone aged from 22 up to the state pension age earning above the threshold (currently, £833.33 per month) must be automatically enrolled in a pension scheme. Those aged under 22 will automatically join the scheme when they reach that age and start earning above the threshold. Employees can opt out of the scheme but they must be offered one in the first place. They can also re-join at any time.
When will I have to start auto-enrolling my employees?
This is specific to your business, however all employees must be enrolled into a scheme by 2018 with many small businesses being impacted within 2017. For further information or to clarify your staging date please contact us.
How much will I have to pay in?
Currently employers must pay a minimum of 1% of their employee’s salary. The minimum contribution will rise to 3% by April 2019.
What if I don’t want to take part in auto-enrolment?
Auto-enrolment is not optional and, as an employer, you have a legal duty to comply. Your employees can choose to leave the scheme if they wish, but you are legally obliged to offer one in the first place. You could face substantial fines if you fail to act.
How can AZ Consultancy Services help?
At AZ Consultancy Services, we recognise that auto-enrolment will place an additional burden on many smaller businesses in the form of new processes, record keeping and reporting requirements. We can take care of everything for you, from helping you find the most appropriate scheme for your business through to ensuring you meet your obligations in terms of record keeping and reporting. By taking this burden from you, we leave you free to focus on what you do best – running your business.
Auto-enrolment means that as an employer, you will be required to act!
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