Under the Pensions Act 2008, the minimum amounts paid into automatic enrolment pension schemes are increasing for employers and their staff. The increases occur in two phases – the first increase needs to be made by 6 April 2018 and the second needs to be in place for 6 April 2019.
Every time you pay your staff or take on a new member of staff you should be assessing them to see if they need to be put into a pension scheme for automatic enrolment.
If you work out that you need to put staff into a pension scheme then you will need to make sure that at least the minimum amount is paid into the scheme.
The amounts you will need to pay are shown in the table below along with the dates when these amounts will be increasing. It is your responsibility to make sure the right minimum contributions are being paid.
As well as continuing to assess your staff each time you pay them, every three years you will need to re-enrol staff who have left your pension scheme and who meet certain criteria.
If you need advice and help with using Sage Payroll or Xero Payroll to assess and manage your automatic enrolment pension duties then contact us for advice or to book a one to one hand holding session to help you get your systems in place.