From an employer’s staging date, they are required to provide a pension scheme and monitor the pay of workers according to thresholds set by legislation. At the time of writing the legislation relating to 2015/16 is still in draft format, but expected amounts are shown in the table below.
Employer contributions of 1%, rising to 3% must be paid into a pension scheme on earnings between the lower level of qualifying earnings and the upper level of qualifying earnings. The first table below shows the auto enrolment minimum contributions for both the employer and employee. The employer can opt to pay the total contributions if it chooses, but in most cases the employee will have their deduction made automatically from their pay.
The Automatic Enrolment (Earnings Trigger and Qualifying Earnings Band) Order 2015 draft legislation sets out the proposed thresholds for qualifying earnings in 2015/16. Anyone above the lower threshold has a right to auto enrolment minimum contributions of 2% (1% employer) rising to 8% (3% employer) based on qualifying earnings.
You will need to assess your workforce every pay period, with severe penalties if you fail to act properly. This can be a complicated process and should be managed together with your general payroll procedures. Alterledger can deal with all your payroll and auto-enrolment needs and save you time and money to spend on your own business. Please get in touch using the form below for more information.
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