Payroll & Auto Enrolment – All In One

Industry News

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.

Employers should focus on quality pensions for Auto Enrolment rather than compliance

Firms could be neglecting staff retirement needs by concentrating solely on compliance, a specialist has warned.

Head of the fit age programme at Towers Watson, Phil Percival said “industry changes from the last decade such as annual allowances, auto-enrolment, ending contracting out and the flexibilities introduced in April, had caused firms to prioritise compliance over other issues”.

He added: “Such a flurry of change is preventing companies from focusing on the real reason for providing pension plans – either for the employer, in terms of attraction and retention, or for the employee in terms of their ability to retire.”

Towers Watson researched about a 100 companies and the results found that when they asked employers to select the most important issue driving their defined contribution pension plan provision, compliance to the legislation came first.

Issues such as  employees’ ability to have a healthy retirement plot were not so important and competitiveness with other businesses, cost, and use of pensions as an attraction or retention were paramount.

Ontime believes that Auto enrolment is about giving workers what they deserve, a financially secure future and a present peace of mind that they will have a healthy retirement.

Auto enrolment workshop set up by Tax advisers

As we know legislation changes make it compulsory for all employers to enrol eligible staff into a workplace pension scheme by 2017, larger employers should have already set up auto enrolment, those with fewer than 50 employees are now nearing their staging date.

The workshop is to be hosted tomorrow on 23rd April at Russell New, in Shoreham Road, Steyning.

Partner Sylvia Spencer said: “All employers have one thing in common – they must face up to the requirements of auto-enrolment.

“They must prepare for the impact on their business, on themselves as business owners and on their employees.”

The seminar aims to educate businesses of all sizes across the Gazette and Herald area to obtain a better understanding of auto ernolment.

Ontime is a pro-active auto enrolment company and as such we highly recommend all business owners within close proximity to this event to attend and learn about their responsibilities under the new legislation.

To register for this event, visit www.russellnew.com/events/ or contact Natalie Boyd at Natalie@russellnew.com

The event will start at 8am.

 

 

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