Understanding pension auto-enrolment as business owners with Bespoke Support Network Essex
September 22, 2017
September 22, 2017
In 2012, the Government introduced the Automatic Enrolment scheme for all kinds of businesses. Despite the introduction of this brand new law, it has only just started affecting to larger companies and so it’s important for small business owners to enrol their staff – otherwise, you can find yourself getting into lots of trouble.
For some employers, this could be the first time you have heard of this pension enrolment scheme. That’s why the Pension experts working at Bespoke Support Network have put together a checklist of how to enrol for small business owners.
● Check Who You Need to Enrol – For any staff who don’t want to take part in this pension scheme, they have the option to opt out but you as the employer are responsible to set one up in case. The date your enrolment duties will come into force is based on the total number of employees who were in your PAYE scheme on April 1st, 2012, meaning the more people in the PAYE scheme, the earlier your ‘staging’ date.
● Preparing for The Staging – Once you have found out when your staging date is, the Pensions Regulator will write to you and ask for a primary point of contact. This is where you should carry out a review of your staff and check who needs to be enrolled. You can do this by assessing their age and salary before determining whether you have to automatically enrol any of your staff plus pay regular contributions. If your employees are aged between 22 and the state pension age, earn at least £10,000 a year and work in the UK, they will be eligible to opt-in.
● Planning For Paying into Your Pension Scheme – You may need to speak to a financial advisor, payroll manager or accountant to sort out the costs for paying into your pension scheme. Contributions started at a minimum of 1 per cent, but while rise to a minimum of 3 per cent from October 2018 for each individual employee.
● Checking Your Staff Records – If you haven’t already, it’s worth investing in payroll software or managers to manage your staff records such as dates of birth, salaries and national insurance numbers, and make sure they are up to date and accurate. It is important that your system is completely compatible with auto-enrolment to save yourself a headache.
● Deciding The Best Pension Scheme – Once you have done all the following stages, you can decide on the perfect pension scheme from your staff (if you haven’t already decided). We recommend doing this six months before your staging date. If you are already using a pension provider, make sure to check if you can use them for auto-enrolment.
If you would like to find out more about the Pension Automatic Enrolment scheme, get in touch with Bespoke Support Network. We will put you in touch with our pension experts Essex for more information and advice.