What is Auto-Enrolment?
Auto-enrolment is a scheme brought in by the government that will automatically enrol qualified employees into a work-based pension plan. Employees can choose to opt out from the scheme, but will lose the opportunity to obtain the valuable pension benefits for a further four years.
To know if you’re eligible for Auto-Enrolment, you should look at table below:
|
Qualifying Earnings |
|||
|
Age |
< £5,668 |
£5,668 – £9,440 |
> £9,440 |
|
16-21 |
Entitled Worker |
Non- eligible jobholder |
Non- eligible jobholder |
|
22- SPA |
Entitled Worker |
Non- eligible jobholder |
Eligible Jobholder |
|
SPA – 75 |
Entitled Worker |
Non- eligible jobholder |
Non- eligible jobholder |
*SPA – Standard Pension Age
Within the Auto-Enrolment Scheme, both you and your employer will both put in a defined contribution of 1% each. This percentage will slowly increase to 3% for the employee and 2% for the employer after the staging period (starting date) for all companies has finished.
The Auto-Enrolment Scheme has already begun in larger companies, but the staging date (starting date) of the plan will depend on your company size.
If you feel like this Auto-Enrolment Scheme is going to put a strain on your business then Sage have a solution: Sage Payroll Auto-Enrolment
How can Sage Payroll Auto-Enrolment help your business?
Sage Payroll Auto-Enrolment software can transfer the necessary employee information from your Sage database into the required Auto-Enrolment fields to be electronically transfer to your choice of Pension Company.
Without Sage Payroll Auto-Enrolment, your wage department will be wasting valuable time each month on manually completing each employee’s Auto-enrolment forms. By using Sage Payroll Auto-Enrolment, you’re saving time and creating an easier process for your employees.
More information will be available later on.
If you wish to find out more about Auto-Enrolment and Sage Auto-Enrolment, Kinspeed are hosting an event on the 14th of November.
To attend, please sign-up here: https://kinspeed.com/events/sage-payroll-auto-enrolment