Workplace Pensions – Auto Enrolment

Before your staging date

  1. Know your staging date

This is the date when your automatic enrolment duties start. You need to ensure that you have chosen a pensions scheme, registered with it and enrolled your eligible employees to that scheme BEFORE this date.

  1. Provide a point of contact

You need to let The Pension Regulator know who will be responsible for automatic enrolment. This is normally the senior most person or director of the organisation.

  1. Check which staff to enrol

Staff become eligible for enrolment based on their age and monthly gross earnings. You need to ensure that all eligible staff members are enrolled before the staging date.

  1. Work out your costs

From the staging date onwards, under workplace pension scheme every employer will be required to deduct appropriate amount of employees’ contribution from their salary and pay it to the pension scheme provider.

In addition to this, the employer will have to make a minimum pension contribution for each individual employee to the pension scheme provider.

  1. Check and update your records

To enrol staff into a pension scheme you will have to provide their details like date of birth, NI number, monthly pay etc. to the pension scheme provider. For this, you will need to ensure that all staff records are kept up to date. Make sure you have correct information about your staff in the correct format for your pension provider’s software. If possible generate a test report for submission before the staging date. Using a payroll software will simplify and speed up the process and ensure necessary reports are submitted on time in the required format.

  1. Choosing a pension scheme

If you already have a pension, it is worth checking with the pension provider to see if it can be used for auto-enrolment. If you do not already have a pension scheme you will need to choose one. There are a number of providers including the National Employment Savings Trust (NEST) which is established by the Government and will accept all employers that apply to join it. A list of pension providers and guidance on how to choose a pension provider can be found at www.thepensionsregulator.gov.uk. Please note, Taxacc Solutions Ltd is not regulated or authorised by FCA to provide any advice on choosing pension scheme so, we cannot provide any advice but, we will work based on your instructions. If you need, you can get a professional advice from an Independent Financial Advisor to help you choose an appropriate scheme.

After your staging date

  1. Enrol with the pension provider

At your staging date, you must add all eligible staff on to the chosen pension scheme by providing necessary information to pension provider to make them active members of your scheme.

  1. Write to staff

At the staging date, you must write to staff informing them about the pension scheme and how are they affected by automatic enrolment.

  1. Making monthly contributions

From your staging day onwards you will be legally obliged to deduct pension contributions from you staff salary and pay these to the pension provider. In addition, you will pay an additional amount to the pension provider as employer’s contribution. Both these amounts will be as per the costs calculate in item 4 above. If you use a payroll software this will automatically be done for you once set up. Currently, the law requires these payments to be made by the 19th of each month.

  1. Complete Declaration of Compliance Checklist

Within five months of your staging date, you must complete a declaration of compliance which confirms that you have complied will all your duties under automatic enrolment.

As your payroll service provider, we can assist you setting up the pension scheme at fixed fee of £400.