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Workplace Pensions/Auto Enrolment

Discussion in 'Legal, Insurance & Issues' started by Your Business Community, Mar 25, 2016.

  1. Your Business Community

    Your Business Community

    Joined:
    May 5, 2015
    Messages:
    46
    Whilst most members on TWF are probably sole traders, there are many who employ at least one person, even if only on a part time basis.

    Being introduced now is a new government requirement - The Workplace Pension. Rather than mumbling around the pro's and con's of this enforced red tape, here are some facts that you have to take notice of, if you employ someone:
    • The law means that every employer must automatically enrol workers into a workplace pension scheme if they:
      • aged between 22 and State Pension age
      • earn more than £10,000 a year
      • work in the UK
    • This scheme was introduced for larger companies a couple years ago, but now all employers are starting to be included. From about now, more businesses will need to set up a scheme every month than had totally registered up until the beginning of 2016.
    • There are 60+ things that you need to do to become compliany
    • These schemes can take months to setup and, if you leave it too late, you will become a distressed purchaser and you costs to be compliant could sky rocket.
    • If there are just 2 people in the business and they are directors with a contract, the scheme needs to be set up
    • Every member of staff needs to be enrolled, however, they can all chose not to participate
    • Regardless of whether all staff want to participate, a scheme will need to be set up and all staff will need to be invited in on a regular basis
    • 0.8% of your employees ‘qualifying earnings’ are contributed, rising to 4% by 2018
    • You pay 1% of the ‘qualifying earnings’ rising to 3% by 2018 into their pension
    • The Government pays in 0.2% of their ‘qualifying earnings’ rising to 1% by 2018
    Once you are compliant and have a scheme setup, it does not stop there! You will need to tie things into your payroll system and regularly run compliance checks, making sure everyone who is eligible is offered a pension.

    ACT NOW:
    • Visit here and enter you company PAYE reference to find out your staging date. If you miss this date, you will be fines and also receive a daily penalty. You will also have to back date the scheme to your staging date!
    • Plan to see how long compliance will tale
    • put a provision in your budget to pay the management costs and contributions
    You then need to work out how to set things up. Searching the web will uncover lots of options, but, at Your Business Community, we believe we have found the best value and possibly fastest way to comply, charging only a few pounds to set up and a small monthly fee to remain compliant.

    Whoever you choose, the most important thing is that you do something.
    JeffNevil and Cody like this.
  2. JeffNevil

    JeffNevil

    Joined:
    Nov 27, 2014
    Messages:
    25
    Great post. Unfortunately so many of us are still totally unaware of what this new policy will entail for both employer and employee.

    What are peoples opinions on this? I know a lot of my close friends who run their own businesses who are totally against this being forced upon them. I personally feel it has been a long time coming and well over due.

    I do however think it increases small businesses need for a HR department. I know business owners often see HR as a total grey area that actually scares them. However, in instances like this, we need them. The benefits are continuously growing for HR, CIPD courses in the UK are excelling as well as internationally. Owners should seek training programmes in CIPD for both themselves and their staff. http://acacialearning.co.uk/
    Last edited: Apr 8, 2016
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