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Plan to relieve your pension tension!
Automatic enrolment is a Government initiative to help more people save for later life through a pension scheme at work. In the past, many workers missed out on valuable pension benefits, because their employer didn't offer them a pension, or they didn't apply to join their company's pension scheme.
Automatic enrolment means that every employer in the UK will have to provide a pension scheme for their staff from their staging date. Each company’s staging date is decided by the government; the majority of companies with 30 employees or less staging in 2016 and early 2017. The Pensions Regulator will write to every qualifying company to provide notification of their staging date, or alternatively go to http://www.thepensionsregulator.gov.uk/employers/staging-date.aspx and enter your company’s PAYE reference number.
With demand for independent advice on automatic enrolment schemes expected to peak in the next two years it is advisable to start planning for your staging date at least 12 months beforehand. From a budgeting perspective consideration needs to be given in advance to the extra cost that automatic enrolment will mean for your business. Also, a review of your payroll software should be carried out to ensure that it is fully compliant with the new regulations.
In limited situations automatic enrolment will not have an impact on your business. The most common of these is single director companies with no other employees. Where a company has multiple directors and no other employees automatic enrolment will not apply as long as the directors do not have employment contracts. It is advisable that these companies contact the Pensions Regulator prior to their staging date to confirm their position.
We provide a payroll bureau fully compliant with the automatic enrolment requirements and would be happy to assist with any queries that you have.