Updated: Mar 5
Happy New Year everyone, we hope you've had a great start to 2022. Lets rock and roll with our first blog of the year which all about Auto Enrolment and what it entails. Read along to see if this applies to your business.
Auto Enrolment - What you need to Know Auto enrolment is part of the Pensions Act 2008, legislation passed by the UK government. Auto enrolment requires all workers who are eligible to be automatically enrolled into a pension scheme by their employer, unless they choose to opt out. The employer must also contribute a percentage of the employee’s wage into the pension scheme. Who is Eligible for Auto Enrolment? All workers who: Are 22 years or older but under the state pension age Earn more than £10,000 annually Work in the UK Aren’t already enrolled into a pension scheme
If an employee earns more than £6,240 annually but less than £10,000, they can choose to opt into the pension scheme but the employer is not legally obligation to make contributions. What is the minimum (%) contributions? As of 6th April 2019, the employees minimum pension contribution is 5% of their qualifying earnings and the employers minimum rate is 3%. It is worth noting that both the employer and the employee can choose to increase the minimum contribution to a higher percentage, although neither is legally obligated to do so. When calculating contributions, you should take into consideration the qualifying earnings, which currently stand at anything from £6,240 and can go up to £50,270. When should I report and pay auto enrolment contributions? Auto enrolment submissions and payment should be done at the end of each payroll. This should be a part of your real time reporting to the HMRC in order to ensure you remain compliant with UK pension legislation. How can Quinton Oakes help? At Quinton Oakes auto enrolment is a part of our service. We will provide the following services as part of your service: Register with a pension provider Review new starter eligibility Automatically enrol those who are eligible Process any non-eligible employees who choose to opt in Assist in opting out employees who chose to do so Automatically process auto enrolment at your chosen payroll frequency Report payroll contributions to the HMRC Report pension contributions to your chosen pension provider Get in touch to find out how Quinton Oakes can help fully manage your payroll and auto enrolment process.