Small businesses will soon need to register under the government’s pension auto-enrolment scheme. Under a law introduced in 2012, all employers must eventually offer a workplace pension scheme and automatically enrol eligible workers in it. This requirement has applied to larger employers since October 2012 and will apply to all employers by 2018.
Pension auto-enrolment is being introduced in stages up until 2018. The largest employers started first, followed by medium-sized and then small employers. Depending on your business size this will be in effect either this year or by January 2017.
Employers have to enrol their employees in a workplace pension scheme if they:
- Are not already in a suitable workplace pension scheme
- Are at least 22 years old, but under State Pension age
- Earn more than £10,000 a year (in the tax year 2015-16)
- Work in the UK
As long as they meet these criteria they will also be covered if they are on a short-term contract, on an agency contract, or on maternity, adoption or carer’s leave. If they earn less than this they can ask to be enrolled and, as long as they earn more than a certain amount, their employer has to enrol them and make contributions for them.
The Pensions Regulator has been writing to current employers approximately eighteen months before their auto-enrolment staging date. Have you received your letter yet, and what action have you taken?
We can guide you through the new pension regulations and help you meet your new pension obligations. Contact us now to get started.