Accounting News

Tena Wallace pension contribution increases

Is your business prepared for pension contribution increases in April?

Wednesday 31 January, 2018

Plan now for the increase in pension contributions applicable to Automatic Enrolment Pension Schemes.
The minimum employers have to contribute into their employee's pension goes up from 1% to 2% of qualifying earnings or pensionable earnings from 6th April 2018. Employee's minimum contributions will also go up from 1% to 3% at the same time, unless the employer has agreed to pay more than their minimum percentage. The total contribution required from both employer and employee will equate to 5% from April 2018.

The final phase of increases will take place in April 2019, rising to a minimum 3% for employer contributions, and 5% for employee (8% in total).

Tena Wallace, HR & Payroll Director, Visionary Accountants St Albans said: ‘It is important that business owners budget for the changes to employee pension contributions that will apply from April 2018. It is also a good time for businesses to review their payroll systems to ensure that they can meet the ongoing auto enrolment duties such as the monthly assessment of workers, payment of contributions and the detailed record keeping, including compliance letters which is required. We offer payroll services to many small and medium sized companies in St Albans and across Hertfordshire. Contact us on 01727 730550 to discuss how we can offer a cost effective payroll package for your business. We offer a FREE initial payroll consultation.’

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