Auto Enrolment Pensions
Auto enrolment is a buzz word at the moment, it seems to be everywhere. A lot of things that appear in the media, after a while, can fade into the background. It might have become quite easy to ignore any mention of auto-enrolment. Or assume that it doesn't apply to you. Even if you employ only one person, it does.
What is auto enrolment?
If you're a small business owner, then auto-enrolment is going to happen to your business. Auto enrolment requires all employers to enrol qualifying staff into a workplace pension scheme. Both staff and employers will be required to pay a contribution. Employers initially will have to pay 1% of staff's qualifying earnings as contribution, though this is set to rise to 5% by 2018.
Large businesses have had to automatically enrol staff since 2012. The dates by which small businesses have to start depends on the size of your business. It could be over the next few months or into 2017.
To find out the deadline for your business visit The Pensions Regulator. You'll need your PAYE reference number.
Chances are if you've not already started preparing for auto enrolment, then you won't have much time to do it in. Unfortunately, there are a lot of things to figure out.
Firstly, you need to find out which of your staff qualify for auto enrolment. Once you've identified which staff are qualifying, you need to make sure each staff member is fully aware of what they're entitled to. This is so they have all the information regarding contributions. Allowing them to make an informed decision to go ahead with auto enrolment or opt out. So not only to you need to get to grips with auto enrolment yourself, but also make it so all of your staff understand it.
Then there's the added difficulty of working out contributions. Auto enrolment is a complex scheme and understanding it can take time. This could be time that you no longer have, depending on your staging deadline.
Fear not, at MoynanSmith Accountants in Carlisle, we know all there is to know about auto enrolment. We'll help you work out which of your staff meet auto enrolment criteria and teach them all they need to know. We'll work out your contributions and make sure you're ready to go before your staging date.