Pensions
What happens if I do not comply with auto-enrolment rules?
July 25, 2016 2:05 pmThe Pensions Regulator has the power to issue a variety of penalties for non-compliance. An initial fixed penalty of £400 will be issued for failure to comply with statutory notices or if the Pensions Regulator has sufficient evidence of a breach of the law. This initial penalty can be followed by escalating penalties of £50…
What happens if my employee leaves under auto-enrolment?
July 25, 2016 2:05 pmWhen an employee leaves, further communication with the pension provider and The Pensions Regulator will be required either to set up a new employee or close down the pension scheme if the employer is no longer employing.
Which pension provider do you use?
July 25, 2016 2:04 pmMost employers will need to set up a pension scheme to enrol their employees. PFN Payroll use NEST (The National Employment Savings Trust). NEST was set up by the government to specifically deal with auto enrolment by small employers. Following the pension provider setup, contributions will need to be paid to the pension provider by…
What is a declaration of compliance?
July 25, 2016 2:03 pmA declaration of compliance is a submission to The Pension regulator to confirm the action you have taken on your Staging Date. A “Declaration of Compliance” MUST be made to the Pensions Regulator once all employees have been assessed and, if necessary, auto-enrolled. This must be done within a five month period following the Staging…
Can I postpone my duties for auto-enrolment?
July 25, 2016 2:02 pmYes, but only for 3 months. However, please note that employees whose automatic enrolment you’ve postponed can still choose to opt in to your pension scheme during the postponement period, effectively negating your postponement. This request must be actioned in the month your employee requests to opt in. On the last day of the postponement…
My employee earns below £5,824pa how does the pension work?
July 25, 2016 2:02 pmEven where an employee is paid below the threshold of £5824 you must still correspond with the employee and the Pensions Regulator, even though you may not need to set up a pension scheme. Also, you must enrol the employee in a pension scheme if the employee requests it, although you will not have to…
My employee earns below £10,000pa, how does the pension work?
July 25, 2016 2:01 pmWe are afraid this will still affect you even when an employee earns under £10,000. The government has decided that EVERY employer in the country will be involved, even where an employee is paid below the threshold of £10,000 you must still correspond with the employee and the Pensions Regulator. An employee who falls into…
Can my employee opt-out of auto-enrolment?
July 25, 2016 2:00 pmYour employee can only opt out of the pension scheme once he/she has been automatically enrolled. Employers must not try to induce an employee to opt-out in any way and must NOT give any employee an opt-out form. Employers are not permitted to handle to any pre opt-out process. This is normally handled by the…
How much will auto-enrolment cost me?
July 25, 2016 1:59 pmCurrently the plans are for the minimum pension contributions to remain at 2% (1% Employee contribution, 1% Employer contribution or the employer can pay the full 2% with 0% Employee contributions) until April 2018. The pension contributions are based on qualifying earnings (which is pay above £5824 Gross per annum or £486 Gross per month)….
What do I need to auto-enrol?
July 25, 2016 1:58 pmTo be eligible for automatic enrolment, your employee must fulfil the following criteria: 1. At least 22 years old; 2. Not yet at State Pension age 3. Earning a salary of at least £10,000 Gross per annum/ £833 gross per month / £192 gross per week (under current rules). 4. Normally working in the UK…