Does Auto-enrolment apply to me? Are you an employer with staff working for you in the UK? If so, then yes, automatic enrolment does apply to you and there are things you will need to do .Whether you’re a multinational company or a chip shop that employs 3 people. Every employer has to auto enrol staff. What is automatic enrolment and why do I have to do it? People are living longer yet too many people are under-saving or not saving at all for what could be a long retirement. The law on workplace pensions has changed to make it easier for millions more people to build up a pension, particularly those on lower incomes. Automatic enrolment means that, rather than having to actively choose to join a pension scheme, staff are put into one by their employer as a matter of course. If they don’t want to be in the pension scheme, they must actively choose to opt out. It’s to encourage people to stay in pension saving. When will I have to do it? Automatic enrolment duties come into force for you from your ‘staging date’.Every company has a staging date. You can find this out by going to the pensions regulator and entering your PAYE number. Or give me a call and I will do it for you. Who do I need to put into a pension scheme? You must automatically enrol all staff who are:
- aged 22 to state pension age
- working in the UK
- earning over £9,440 a year.
- setting up a pension scheme or modifying an existing one
- making any necessary changes to payroll so it can handle the new requirements
- putting systems in place to monitor the ages and earnings of your staff (your payroll may be able to do this)
- writing to your staff.