If you are a small business owner in the UK, by now you have heard about the new requirements for workplace pension schemes launched across the country. For the first time, those who own businesses of any size will be required to enrol their employees in mandatory pension schemes.
We have been hearing a lot from our clients about these new regulations, and many small business owners are feeling confused about what they are required to do going forward. Worried about when you need to enrol, and what members of your staff are eligible? Read on.
Who is eligible?
You must automatically enrol all of your eligible workers into a workplace pension scheme in order to not fall foul of the new rules. Your eligible employees are those who are:
· Not already in a qualifying pension scheme at your workplace
· Between the ages of 22 and the state pension age (the earliest age at which they can claim their state pension), which is usually 74
· Earning at least £10,000 in a year (this figure is subject to change)
· Working in the United Kingdom
It is important to note that non-eligible workers can also request to be enrolled into your scheme. If they do, you must also pay the minimum contributions. That said, entitled workers (those who are at least 16 years old and under the age of 75 who earn less than £5,824) can also ask to join, but you will not have to pay any contributions for these individuals.
When do you need to enrol?
Your enrolment date or “Staging Date” will depend on many different factors, including the number of employees on your payroll. It is imperative that you determine this date as soon as possible and you can find this date here by entering your PAYE reference code. Make a note of this with your accountant or payroll provider so that you can fulfil all tasks with time to spare.
Contact Carey Pensions today for information and support in order to make sure that you are on the right track.