{"id":192,"date":"2021-02-15T02:16:09","date_gmt":"2021-02-15T02:16:09","guid":{"rendered":"https:\/\/guide.no-worries.co.uk\/?post_type=ht_kb&#038;p=192"},"modified":"2021-02-15T02:16:09","modified_gmt":"2021-02-15T02:16:09","slug":"are-you-an-employer-for-the-purpose-of-automatic-enrolment","status":"publish","type":"ht_kb","link":"https:\/\/guide.no-worries.co.uk\/index.php\/knowledge-base\/are-you-an-employer-for-the-purpose-of-automatic-enrolment\/","title":{"rendered":"Are you an employer for the purpose of Automatic Enrolment?"},"content":{"rendered":"\n<p class=\"has-theme-default-color has-text-color wp-block-paragraph\" style=\"font-size:22px\">Workplace pensions and automatic enrolment &#8211; how will your company be affected?<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-is-automatic-enrolment\">What is automatic enrolment?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It has long been recognised that most people are not saving enough for retirement and, as a result may not be able to afford to live comfortably in their retirement on just the State Pension. As people are also living longer, there is increasing strain on the State benefits system, so private pension provision is becoming increasingly important.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To encourage individuals to start building up retirement benefits, the Government introduced pension reforms through the Pensions Act 2008 that requires all employers to offer workplace pension schemes and to automatically enrol eligible workers into their schemes.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Every employer with at least one member of staff now has new duties, including registering with a pension scheme, enrolling those who are eligible into a workplace pension scheme and contributing towards it.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An employee is eligible if they:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>are aged between 22 and State Pension age&nbsp;<\/li><li>earn more than \u00a310,000 a year<\/li><li>work in the UK<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This is called \u2018automatic enrolment\u2019 because it is automatic for staff \u2013 they don\u2019t have to do anything to be enrolled into a pension scheme, but it is not automatic for employers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under the law introduced in 2012, all employers must offer a workplace pension scheme and automatically enrol eligible workers in it. This requirement applied to larger employers since October 2012 and has applied to all other employers since 2018.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-much-will-i-have-to-pay-into-a-pension-scheme\">How much will I have to pay into a pension scheme?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The law sets a minimum level of contributions to be paid by an employer, the employee, and the government.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This total minimum contribution started at 2% of your member of staff\u2019s earnings (1% from you, 0.8% from your employee, and 0.2% as tax relief). From April 2019 onwards it has been set at 8% (3% from you, 4% from your employee, and 1% as tax relief)<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You and\/or your staff can pay more than the minimum.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"what-types-of-workplace-pension-scheme-can-i-offer\">What types of workplace pension scheme can I offer?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A workplace pension scheme must be a qualifying pension scheme to meet the requirements of automatic enrolment. It must also meet the minimum levels of contributions or allow benefits to build up at least at a minimum rate.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Qualifying schemes may be either defined benefit schemes or defined contribution (money purchase) schemes.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Employers have a number of different options available to them when selecting a suitable qualifying workplace pension scheme. They can:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>use an existing workplace pension scheme,if it qualifies;<\/li><li>amend an existing workplace pension scheme to meet the qualifying criteria;<\/li><li>set up a new pension scheme which meets the qualifying criteria; and\/or<\/li><li>use NEST (the National Employment SavingsTrust), a new scheme that is available to any employer to use for some orall of their staff; or<\/li><li>use a combination of these options for different areas of their workforce.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"important\">IMPORTANT<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">As you are one director of your limited company, and there is an additional member of staff working for the limited company, your limited company is an employer for the purposes of automatic enrolment.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means that you will need:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Confirm who to contact (<a href=\"http:\/\/www.tpr.gov.uk\/elect\" rel=\"noreferrer noopener\" target=\"_blank\">www.tpr.gov.uk\/elect<\/a>)<\/li><li>Choose a pension scheme &#8211; You should do this around 6 months before your staging date.<\/li><li>Work out who to put into a pension scheme &#8211; You must do this on your staging date.<\/li><li>Write to all staff &#8211; Do this as soon as you have chosen a pension scheme. Templates can be found at <a href=\"http:\/\/www.tpr.gov.uk\/inform-staff\" rel=\"noreferrer noopener\" target=\"_blank\">www.tpr.gov.uk\/inform-staff<\/a>&nbsp;<\/li><li>Declare your compliance &#8211; You must do this within 5 months after your staging date.<\/li><\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Once you have completed your declaration of compliance you still have ongoing duties towards your staff. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>paying money into their pension scheme<\/li><li>dealing with requests to join and leave the pension scheme<\/li><li>monitoring the ages and earnings of your staff<\/li><li>keeping accurate records of what you have done.&nbsp;<\/li><\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Workplace pensions and automatic enrolment &#8211; how will your company be affected? What is automatic enrolment? It has long been recognised that most people are not saving enough for retirement and, as a result may not be able to afford to live comfortably in their retirement on just the State&#8230;<\/p>\n","protected":false},"author":2,"comment_status":"open","ping_status":"closed","template":"","format":"standard","meta":{"footnotes":""},"ht-kb-category":[18],"ht-kb-tag":[],"class_list":["post-192","ht_kb","type-ht_kb","status-publish","format-standard","hentry","ht_kb_category-core-info"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Are you an employer for the purpose of Automatic Enrolment? | No Worries Help Centre<\/title>\n<meta name=\"robots\" content=\"noindex, follow\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Are you an employer for the purpose of Automatic Enrolment? | No Worries Help Centre\" \/>\n<meta property=\"og:description\" content=\"Workplace pensions and automatic enrolment &#8211; how will your company be affected? 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