With auto enrolment on the horizon, it is important to be aware of what you need to do for your business. Being organised and prepared is the best way to ensure that your transition into auto enrolment pensions is as smooth as possible.
If you don’t already know your staging date, then this is the first step that you need to take. Your auto enrolment staging date is based on your PAYE number.
All employers are required by law to set up auto enrolment pensions. There are 4 key decisions that you need to make and we will guide you through the decisions to help make the transition into auto enrolment pensions as stress free as possible. In this blog we cover the first two key decisions:
Decision One – Who should be in the pension scheme?
The first thing that you need to do to comply with auto enrolment legislation is assess your workforce.
Don’t make the mistake of only considering those staff who are currently paid through your payroll. You need to look at everyone who works for you. This could include subcontractors, volunteers, freelancers or casual staff who you pay cash in hand. You must assess all of these workers and decide whether or not they should be paid through your payroll.
If you have difficulty in deciding whether or not workers are really your employees, Critchleys HR and Payroll can assist you in understanding the employment status of your workers. Our HR blog this month explores this subject and is available here.
Once you’ve assessed your workers, and decided who needs to be on the payroll, you can begin to set up your auto enrolment pension scheme.
Decision Two – Which pension provider should I use?
There are over 1,700 pension providers available that you can chose from. However, many pension providers are not making their pensions available to employers with fewer than 50 staff. At Critchleys we’ve decided to work closely with the 3 main Master Trusts who will accept all employers, even if they have only one employee: -
- The People’s Pension (The UK’s largest auto enrolment pensions scheme with 30 years of experience).
- NEST (Set up by the government especially for auto enrolment pensions).
- NOW: Pensions (NOW work in collaboration with ATP Denmark, one of the largest pension funds in Europe).
We are not regulated to advise you about pension investments and which will give the best return for your contributions. However, we have chosen these 3 reputable Master Trusts as they accept all employers and their pensions can be set up on line and managed seamlessly by our payroll team.
Each of the Master Trusts has a different charging method. Some are free to set up whereas others charge a small fee upfront. They have different admin and management charges which may reduce the amount which is contributed to the employee’s pension.
The decision lies with you as to which trust you choose, but we will work with you to provide support and peace of mind throughout this process.