Under the new pensions auto-enrolment regime, which is being phased in over a number of years, employers have a duty to automatically enrol all eligible jobholders into a qualifying pension scheme with effect from the employer's staging date, which is based on the number of people in the employer's PAYE scheme.
A qualifying scheme may be an existing pension scheme, if it meets (or can be amended to meet) the automatic enrolment criteria, a new scheme that meets the qualifying criteria, or one of a number of schemes that have been established with auto-enrolment in mind.
Employers and employees must pay a minimum contribution into the fund. Compulsory contributions are being phased in, starting at 1% and rising over a number of years.
Workers who have been automatically enrolled also have the right to opt out of an employer's pension scheme.
The new rules require careful consideration and planning, and employers are advised to seek expert advice. We can help with all of your payroll needs, including dealing with the requirements of auto-enrolment – please contact us for further assistance.