Are you ready to increase pension contributions?
The Pensions Regulator is reminding employers that they need to comply with their auto enrolment duties.
TPR are reminding employers that they need to be ready to deal with the increased auto enrolment pension contributions which apply from April 2018. Employers and their employees need to be aware of how the changes will affect them, including checking that the employer's payroll software is compatible.
Download our factsheet on the auto enrolment 2018 increases.
Guidance is included on TPR website on this issue. From 6 April 2018, the minimum contributions employers and staff pay into their automatic enrolment pension goes up to 2% for employers and 3% for employees. This increase has been planned since automatic enrolment started. Further increases in rates are scheduled for April 2019.
The Pension Regulator recommends that employers provide employees with advance notice of the increases in Workplace Pension contribution levels. To assist you with that, we have created a draft template. Download our template here.
Automatic enrolment still applies to temporary staff this Christmas
With the festive season fast approaching, employers may be planning to take on temporary staff to help their business survive the rush. Automatic enrolment applies to these employees in the same way as permanent employees, even if they will only be working for a short time.
Employers will still need to assess temporary staff and auto enrol any eligible employees into a qualifying pension scheme. Once auto enrolled both the employer and employee must make pension contributions.
It is possible to apply postponement to temporary employees, which has the effect of delaying some of the auto enrolment duties, but TPR are warning this must be dealt with correctly.
Please contact us if you would like any help with auto enrolment duties.