Are you ready for Auto Enrolment?
1 in 3 businesses still don’t know what Automatic Enrolment is.
Government concern over the ability to sustain the financial burden of an increasing aging population led to the The Pension Act 2008. In turn, this led to the introduction of new measures designed to encourage greater private saving. A new law came into force on July 2012 and as a result all employers, regardless of size, will have to enrol their workforce into a pension Scheme. All employers will deduct a pension contribution on behalf of their jobholders and they themselves will also contribute to the scheme.
Companies are gradually being enrolled into the scheme depending on size. By May 2014 it is estimated that all companies with more than 500 employees will already have their pension schemes up and running.
If you're an employer in the UK, then automatic enrolment will affect you and there are things you'll need to do.
Even if your staging date is some time in the future it’s a good idea to familiarise yourself with Auto Enrolment now to understand the impact on your business and how you can prepare for it.
Even if you already offer pension arrangements for your workers, you may not have a qualifying scheme in place and you'll still have some new obligations to meet too
Key points to note:
- If you're a UK employer, auto enrolment will affect you.
- You will need to 'enrol' certain employees into a pension scheme.
- This will start from your 'staging date', although you can postpone if necessary.
- You must communicate the changes to your employees that have been affected.
Start preparing now with Sage 50 Payroll
Preparation is key. From creating an action plan, to forecasting your costs, it's important you start preparing now. All of this can be done from within Sage 50 Payroll Auto Enrolment Edition.