Be prepared for pension change
Even if you employ only one person, auto enrolment into a workplace pension scheme is something you cannot ignore. The law on workplace pensions under the Pensions Act 2008 states that every employer in the UK must enrol eligible staff into a workplace pension and contribute towards it.
The auto enrolment scheme began in October 2012, with larger firms complying first. SMEs that existed in 2011 are enrolling their staff by the end of 2017, followed by all newer employers by February 2018.
You can find out when your staging date for auto enrolment duties comes into effect on The Pensions Regulator website by inserting your PAYE reference.
However, letters advising the date will be sent to individual firms by The Pensions Regulator. If you don’t pay staff by PAYE, the date you will need to comply will be 1st April 2017.
The level of pension contributions will be phased in over time to help employers and individuals adjust. Full contributions will have to be paid from 1st October 2018.
You need to pay the correct contributions on time to your staff pension scheme. If you don’t, you risk being fined by the Regulator.
We know many small employers are worried about the changes to pensions law, but as part of our complete service at My Management Accountant, we can guide you through the process, help you comply and process the pension contributions seamlessly through our payroll service.
Our systems also manage any changes to employees’ eligibility or if they choose to opt out of the workplace pension scheme. One of your duties is to accept opt-out and leave requests.
The Pensions Regulator is a public body set up by the UK government to regulate work-based pensions and will be communicating with all employers to let them know when their legal duties start.
For more information click here