In recent weeks The Pensions Regulator (“TPR”) have upped the ante on compliance checks, targeting employers who are not complying with their automatic enrolment pension duties, and those who they suspect are flouting the rules.
TPR have been conducting a series of country-wide inspections, often done with short notice. And whilst the majority of employers abide by the rules, there are still some who (knowingly or unknowingly) continue to disregard their responsibilities.
Your duties as an employer
Whether you employ one, or one thousand employees, you must automatically enrol qualifying staff into a workplace pension scheme, which both you and your employee contribute towards. Your duty begins on the employees first day at work and must be calculated accordingly.
At the moment, the total minimum contribution is 8%, and at least 3% of this must be from the employer.
Your rights as an employee
Automatic enrolment ensures that eligible workers are automatically enrolled into a pension scheme and employers are legally required to make contributions. The employer must also pay money into the scheme.
To be eligible to be automatically enrolled, you must meet the following criteria:
- Be at least 22 years old;
- Not yet at State Pension age;
- Earning a salary of at least £10,000* p.a. (under current rules);
- Normally working in the UK under a contract of employment
If you do not meet these criteria you can still request to join your employer’s workplace pension scheme, although your employer may not be required to contribute.
How can we help
At Smith Cooper, our specialist payroll bureau delivers the necessary services around your needs, helping you wade through the complex and ever-changing employment regulation and taxation landscape.
Whether you need us to provide simple support, help design and implement valuable improvements, or take the burden of compliance off your hands, we are here to help. Get in touch with a member of our team today for more information.