From 1st October 2017 those who hire staff, even if it is just one person, become an employer. Your legal auto enrolment duties will commence on the day that your first employee starts work.
You therefore need to plan in advance when employing staff for the first time, please contact your analyst for further details as practically all of the below can be outsourced to us.
Key things to think about:
Which pension scheme you are going to use. The most common scheme for startups in the NEST pension scheme (a workplace pension)
http://www.nestpensions.org.uk/schemeweb/NestWeb/public/home/contents/homepage.html but you can opt for another pension if required.(Please note - we cannot provide advice on which pension to choose).
You must also nominate a contact who will be responsible for your company�s auto-enrolment, and will receive all communications from the Pensions Regulator.
Once you have chosen your scheme your obligations are:
Assess the workforce
· if earnings are over £10k, they are 22+ and below retirement age are 'eligible workers', which means they have to be automatically enrolled.
· if an employee earns up to £10k, they are 22+ they can ask to be enrolled in the scheme.
Contribute and communicate the scheme to your employees
· you have to set the employee/ employer contribution rates which will be paid over to the pension, the minimum rates are:
|Date||Employer minimum contribution||Total minimum contribution|
|Old rates, up until 5 April 2018||1%||2% (including 1% staff contribution)|
|Currently, from 6 April 2018 to 5 April 2019||2%||5% (including 3% staff contribution)|
|6 April 2019 onwards||3%||8% (including 5% staff contribution)|
· you have to explain the impact of this to your employees and what it means to them, and also give them the right to opt out
Enroll your staff and set up pension scheme
· All the enrollment set up data should be set up, pension contributions configured and processing of any opts out that you receive.
· You will be required to supply details of new enrolment, leavers/changes and contributions to your pension provider in a specific format so that contributions can be made.
Please get in contact with your analyst if you need further details on any of the above.