Auto-Enrolment and New Employers

Auto-Enrolment 2016

New Employer from 1st October 2017?

Are you thinking about employing staff for the first time?  If you are I’m sure you’ve considered registering a PAYE scheme, arranging contracts, sorting out employer liability insurance and all the other ‘normal’ things that you would expect to have to put in place.  But did you know that if you become an employer for the first time on or after 1st October 2017 then you will immediately have Auto-Enrolment Duties to comply with?

What is Auto-Enrolment?

Under the Pensions Act 2008, every employer in the UK must put certain staff into a workplace pension and contribute towards it. For any new employer from 1st October 2017 these duties apply from the first day the first member of staff starts working for you.  This is known as your ‘Duties Start Date’.

What do you have to do?

Compliance with auto-enrolment means getting to grip with several responsibilities and processes:

  • Initial and ongoing assessment of all staff to determine whether they are Eligible Jobholders, Non-Eligible Jobholders or Entitled Workers.
  • Ensuring mandatory auto enrolment correspondence is provided to all staff advising them of how auto-enrolment impacts on them.
  • Enrolling all Eligible Jobholders into a qualifying pension scheme.
  • Processing any ‘Opt-Ins’ for employees who do not qualify to be auto-enrolled but who choose to join the scheme, and any ‘Opt-Outs’ for employees who have been auto-enrolled and do not want to be part of the scheme.
  • Notifying your chosen Pension Provider of all relevant payroll data each pay period.
  • Paying the Contributions due to your Pension Provider.

Lots of information supporting you with complying with the Duties can be found at the Pensions Regulator website. And, of course, if you decide that personally dealing with the administrative side of these responsibilities yourself is not the best use of your time then please do get in touch – we are more than happy to help with any element of your Payroll and Auto-Enrolment responsibilities.