Once you have registered with the Pensions Regulator the main implication is the need to calculate, deduct and pay your employee contributions towards Auto Enrolment. Find out more about what you need to do with our handy guide.
This will become a regular process that will take place alongside the processing of your payroll.
You will need to ensure you:
- Manage your pensions data and calculate payments and deductions.
- Make electronic payments to employees.
- Calculate your pensions liability.
Updating the Pensions Regulator
After you have made the pension payments to your employees, you will need to provided any updates along with regular reports to the Pension Regulator. You will need to maintain accurate records that will be sent as part of your updates.
- Keep records of all payslips, summaries and reports
- Ensure that you are up to date with both payroll and pension legislation to ensure you are completely compliant.
Responsibilities and re-enrolment
Once automatic enrolment has been completed you must continue to asses your employees for Auto Enrolment for certain thresholds that include
- A worker’s 22nd Birthday
- A worker’s 18 Birthday
- The first day of employment for a worker earning more than £10,000 a year.
As there are age and wage triggers for automatic enrolment, you must continue to keep on track of the changing circumstances within your workforce.
If beneficial you may wish to create a personalised action plan to best practice, gain an overview of the cost of automatic enrolmet to your business and set up a pension plan for employees who reach the threshold.
Each trigger date you have six weeks to provide information to the relevant employees regarding automatic enrolment. You have to ensure that the company does not breach the regulations set by The Pensions Regulator.
Automatic re-enrolment every three years
You must re-assess your employees every three years from your staging date. Eligible employees who have chosen to opt-out on a previous occasion must be automatically enroled. It is the responsibility of that individual to opt-out. You must provide the employees with the appropriate information on the options as at the initial staging date. Any employee eligible for re-enrolment must be given details on the scheme, what it means for them and their rights to opt out.
Those not eligible for automatic re-enrolment but who are eligible for self enrolment must be given information for opting in. Information must be provided in a range of formats and given directly to the employee. Ensuring that all the above is covered is a must to ensure that you don’t breach any pension legislation as you could be liable for a fine.
Information must be provided in a range of formats and given directly to the employee.
Ensuring that all the above is covered is a must to ensure that you don’t breach any pension legislation as you could be liable for a fine.