But are you clear as to what Automatic Enrolment is?How does it affect you as an employer?
Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it.
In order to start Automatic Enrolment, you must know your Staging Date– set in law as of 1 April 2012 .You’ll need your PAYE reference to find out your staging date.
You must enrol all workers who:
- are aged between 22 and the State Pension age
- earn at least £10,000 a year
- work in the UK
The Pensions Regulator has a very useful check list on their website to help you on your way.
Prior to using it, you will need to know the:
- PAYE Reference
- Letter Code
- Age and earnings
As an employer,you must make a contribution to the pension scheme for those workers.
The Pensions Regulator could give out fines if you do not pay the minimum contribution for each member of staff, or if you pay late;no later than the 22nd day of the following month or 19th if you pay by cheque.
If you already have a workplace pension scheme, you can check if you can use it for Automatic Enrolment.