Payroll & Auto Enrolment – All In One

BBC warns employers of carers and nannies they may need to make pension contributions

From 1 June 2015, businesses employing up to 30 staff will gradually be liable to offer their staff workplace pensions, under the auto enrolment programme.

This also includes people who only employ one staff member, such as a nanny or a carer.

The Pensions Regulator, which enforces the programme, states those who do not comply with the new laws could receive a fine of £400.

However, it is working with about 200 support organisations to make sure people get correct advice.

Under new auto enrolment laws, all employees over the age of 22 and less than the pension age who earn more than £10,000 a year will have the right to a workplace pension – unless they choose to opt out.

So far, nearly 5.2 million workers in 45,000 larg companies have joined the scheme. Between now and 2018, there will be an estimated 3.8 million more workers enrolled onto workplace pensions by about 1.3 million employers.

‘Anxiety’

Any employer who took on an employee for the first time after 1 April 2012 will not have to pay towards their pension for another two years.

Many elderly or disabled people – whose care is organised through the local authority – might have pension contributions being paid for them.

But it is not clear whether all local authorities will be prepared to take on the extra expense of a pension.

All the DWP will say is that councils “should consider” the extra expense.

In the meantime however, warning letters sent out by the Pensions Regulator have come as a surprise to many people who have employed carers.

“It’s come out of the blue, and they’ve just been unaware of it,” said Edward Graham, head of advice and information at the charity, Carers UK.

“It’s caused a very high degree of anxiety amongst many people who’ve received these letters.”

Ontime offers tailored made solutions for employers of all shapes and size, to discuss how we can help please call us today on 0113 8267260.

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