Auto Enrolment: Pension Rates Are Changing
Are your staff included?
POSTED BY ALISON MEAD ON 04/03/2019 @ 8:00AM
Under the Pensions Act 2008, the minimum amounts paid into Auto Enrolment pension schemes are increasing for employers and staff ...
Remember, the auto enrollment pension rates are changing in April!
copyright: ketchana / 123rf
From April 2019, the amount of money people pay into workplace pensions will rise as minimum contributions from employees are increased from 3% to 5% under auto-enrolment rules. Employers will also see their contributions go up from 2% to 3%
Every time you pay your staff, or take on a new member of staff, you should be assessing them to see if they need to be put into a pension scheme for automatic enrolment.
By law, a total minimum amount of contributions must be paid into the scheme. You, the employer, must make at least the minimum employer contribution towards this amount and your staff member must make up the difference.
If you decide to cover the total minimum contribution required, your staff won't need to pay anything. As well as continuing to assess your staff each time you pay them, every three years you will need to re-enrol staff who have left your pension scheme and who meet certain criteria.
"Would you like to know more?"
If you'd like to find out more about Auto Enrollment, then do give me a call on 01604 420057 or click here to ping me an email and let's see how I can help you.
Until next time ...
More about Alison Mead ...
Alison loves bookkeeping. She has been helping clients to be better bookkeepers in Sage 50 for over 22 years and has more recently added Xero Accreditation to her list of skills.
She specialises in a very unique hand-holding method of training, helping bookkeepers and business owners to use their accounts software as and when they need support in setting up and producing their invoices, reports and financial information.
Alison combines her role at Silicon Bullet with running two network marketing businesses and is also a Regional Leader for 4Networking as she likes to keep busy.
You know what they say, if you want something done well ask a busy person!
More blog posts for you to enjoy ...