If you become an employer for the first time on or after 1 October 2017, you will immediately have legal duties for your new member of staff. These duties apply from the first day the first member of staff started working for you. New employers after 1 October 2017 don't have a staging date therefore you must comply with your duties straight away. Below is a brief outline the guidelines from The Pensions Regulator.
- Decide who will be point of contact for auto enrolment and inform The Pension Regulator
- Check who to enrol – and do a preliminary assessment of staff
- Calculate your costs for setting up auto enrolment and any ongoing costs. The table below shows minimum pension contributions
- Check your employee records are accurate and your payroll software can meet your ongoing automatic enrolment duties
- Choose a pension scheme that complies with auto enrolment legislation
- Formally assess and enrol staff into a scheme
- Write to your staff within six weeks of the start date of your legal duties
- Ongoing duties will include: record keeping, monthly assessment of staff, enrolment of staff and written communications, paying contributions in to the chosen pension scheme each month
- Complete the Declaration of Compliance with The Pension Regulator usually within five calendar months from the start of legal duties
- Re-Enrolment – usually within three months before the third anniversary of the date legal duties began (or three months after that date) you must choose a re-enrolment date. Eligible staff must be identified and re-enrolled into the pension scheme. You must write to them within six weeks and you must complete a re-declaration of compliance within five calendar months of the third anniversary date of when your legal duties started.
Minimum Pension Contributions Payable
|Date effective||Employer Minimum Contribution||Staff Contribution||Total Minimum Contribution|
|Currently until 5 April 2018||1%||1%||2%|
|6 April 2018 to 5 April 2019||2%||3%||5%|
|6 April 2019 onwards||3%||5%||8%|
Tena Wallace, HR & Payroll Director, Visionary Accountants St Albans said:
‘The above guidelines issued by The Pension Regulator show how complicated the legal duties will be for any new employers setting up a business and employing staff after 1st October 2017. It is essential that all new businesses have a payroll system that can meet any ongoing automatic enrolment duties such as record keeping, monthly assessment of staff and payment of pension scheme contributions. The information provided above is for new employers but please note there may be different tasks to complete for Director-only companies, so please get in touch for assistance. At Visionary Accountants we have an experienced payroll team and can offer a cost effective payroll package for your business. Call us now on 01727 730550 to arrange a FREE initial payroll consultation for your business.'