Milsted Langdon is reminding employers that the law on workplace pensions has changed. All employers are now legally required to automatically enrol staff into a pension scheme and make a minimum employer contribution if the employee is:
- aged between 22 years and state pension age
- working in the UK
- earning over £10,000 a year
Employees need to be informed about the scheme and even if they don’t meet the criteria listed, they must be allowed to opt in to the pension scheme if they choose to do so. However, an employer contribution is not required in this case.
Every company has a ‘staging date’ which is the date that they must be ready for auto-enrolment. The largest companies were first and so auto-enrolment has already started for them. Smaller firms are then required to comply and so you may find that your staging date is later this year or some time next year. However, by 2018, every business must operate a pension scheme for qualifying employees. Whilst 2018 may seem like a long way off, some businesses will need to have their scheme in place long before then so it is important to check if your staging date is in 2014 or 2015. There is a lot to do so we recommend that to ensure employers meet their requirements for auto-enrolment, they should start planning now.
We can help your business prepare for auto-enrolment compliance by providing help and guidance throughout the whole process. We’ll help you assess the cost for your company and provide assistance in setting up or reviewing your pension arrangements. We can also manage your payroll function so that you are fully compliant.
Milsted Langdon has prepared a free comprehensive guide to auto-enrolment compliance which you can view by clicking here.
To find out how we can help you with auto-enrolment, contact us.