What is Auto-Enrolment?
People are living longer. The aging UK population and longer retirements are straining pension promises. In 2008 the Government decided to address this problem by introducing the Pensions Act.
Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called ‘automatic enrolment’. If you employ at least one person you are an employer and you have certain legal duties.
How does it affect my business?
Auto-enrolment makes it easy for your employees to make contributions towards their retirement. By law, the employer has to pay at least the minimum amount into the scheme which is currently 2% of salary increases to 3% April 2019. The employee also has to pay at least the minimum amount which is currently 3% of salary increases to 5% April 2019
But auto-enrolment carries another burden for the employer as it creates a large amount of administration for businesses – particularly those which see a large amount of staff turnover.
According to the Centre for Economics and Business Research, small businesses (1-4 employees) face an average cost to implement systems to deal with the new pensions legislation of £8,900. This rises for businesses with increasing numbers of employees.
Once your scheme is set-up there are on-going duties required to keep you compliant, which add to the administrative burden:
- Monitor the ages and earnings of your staff
- Manage requests to join or leave your scheme
- You must keep records of how you’ve met your legal duties
Wagemate make auto-enrolment simple for your business
Wagemate offers a fully managed auto-enrolment service to take the pain out of running your scheme single-handed. Or we can just manage the bits that you need help with – whatever works for you. Our specialist team can help you from the beginning, helping you set up your scheme and then run it on your behalf, saving you time and money.
Setting up your scheme – We import all your payroll data and make sure your scheme is set up properly right from the start to make you compliant.
Employee assesses and enroll – every time your staff are paid we manage opt-ins/opt-outs, look at the ages and earnings to assess if any employees need to be added to the scheme, monitor leavers, enroll starters, and re-enroll any of your opted-out employees every three years.
Contribution calculation – we calculate both employer and employee contributions and submit to the pension provider. And we make those payments via BACS or your payment method of choice.
Employee communication – we make sure your employees are kept completely up-to-date with relevant information at all times. We also provide access online so they can view contributions, documentation, and statements and even opt in or out if they want to.
Regular reports – we provide all the reports you need to make sure your scheme is run efficiently in all aspects.
On-going support – our specialist team are here for you to offer advice and answer any questions you may have regarding your auto-enrolment scheme. Just pick up the phone and dial 03330 102102 or email firstname.lastname@example.orgGET A FREE QUOTE