For the first time outside of the National Insurance system, employer pension contributions are becoming mandatory.
As the rules apply to all UK employers regardless of how many employees you have, all businesses with employees will be affected. Our financial management specialists can help assist you in preparing your business for auto enrolment and ensure you comply with all your duties as an employer.
What are my duties?
Not only do you need to provide a pension scheme, but you also need to enrol employees and contribute on their behalf. As an employer there are duties that you must comply with under the auto enrolment scheme.
- comply with your duties;
- have a suitable scheme;
- register your arrangement with The Pensions Regulator;
- auto enrol Eligible jobholders;
- make contributions;
- keep records;
- re-enrol opt outs periodically.
The commencement date for your duties will be dependent upon your employee headcount and/or PAYE code. Eligible job holders will need to be auto enrolled into a qualifying workplace pension scheme. Employers must enrol eligible job holders directly into the scheme without the requirement for any employee activity.
Contributions will come from you as the employer, the employee and HMRC.
The next step
Preparing your business for auto enrolment is a critical activity and should be undertaken sooner rather than later. Timely action will help ensure your business is not overburdened when your staging date becomes imminent.
We can help to ensure that you are prepared well in advance of your staging date. For further information or to discuss auto enrolment in relation to your specific circumstances, please contact your usual UHY partner.
To read more about the do’s and don’ts, and the questions you should be asking yourself, download our useful factsheet: auto enrolment, what do you need to do.