Under auto enrolment, UK employers are legally required to set up a workplace pension, enrol qualifying employees automatically into it and contribute to their pension savings.
Auto-enrolment is government legislation on workplace pensions, designed to help people save for later life. All employers need to think about it – even if they only employ one person – because they may need to provide their employee(s) with a workplace pension.
Auto enrolment eligibility criteria for qualifying employee:
Employee needs to:
- Be aged between 22 years old
- Be under State Pension age
- Earn more than £10,000 a year
If you don’t meet the criteria above your employer would not automatically enrol you but you may request your employer to enrol you in the workplace pension scheme.
Planning of auto enrolment will require a strategic approach towards the payroll department. The payroll software would need to be updated so that it is fully compliant and fulfilling the duties of auto enrolment.
As a result, it will have an effect on RTI. At CWI Accountants, we offer an all in all payroll service that is fully RTI-Auto enrolment compliant.
How we can help:
- Identify who will be affected within your business
- Assist on pension scheme selection and ensure you are set up correctly
- Register your business and scheme with The Pensions Regulator
- Auto enrol eligible staff and new staff joining
- Provide on-going administration of auto enrolment
- Deal with any employees opting out
- Advise on how salary sacrifice can minimise costs
- Forecast the financial impact on your business