Automatic Enrolment

What is it?

UK businesses who employ one or more workers have to put them into a pension scheme if they meet certain criteria

Who does this apply to?

You must automatically enrol everyone working for you:

  • who is aged between 22 and state pension age
  • who works in the UK
  • for whom you deduct income tax and National Insurance contributions from their wages
  • who is likely to have a gross earnings over £10,000 per annum

Find out your staging date here :-

Your auto enrolment duties come into force from this date.

Some staff who don’t meet the criteria listed above are able to opt into the pension scheme you’re using for automatic enrolment. You must put them in if they ask.

You’ll have to pay a minimum employer contribution for all staff you put into this scheme.

Certain other staff can ask to join a pension scheme. You must put these staff in a scheme, but the rules are different and there’s no requirement for you to pay an employer contribution.

It’s the age and earnings of a member of staff that determines what ‘type’ of worker they are and therefore what duties you’ll have for them.

What else do you need to do?

You’ll need to write to each member of staff individually to tell them how they’ve personally been affected by automatic enrolment.

The information you’ll need to tell them is different depending on their rights and the duties you have for them.

You must also provide certain information to the regulator about how you’ve complied with your duties.

Start planning early

We can start planning for our payroll clients auto enrolment early and can offer the following service:-

  • setting up a pension scheme or modifying an existing one
  • making any necessary changes to payroll so it can handle the new requirements
  • putting systems in place to monitor the ages and earnings of your staff (your payroll may be able to do this)
  • writing to your staff.

Call us today if we can help.