At Bowdon Accounting Services, we understand that managing your workforce’s pension scheme is complex. Here’s a concise guide on what employers need to know about auto enrolment to ensure compliance with strategic finance support.
🔍 What is Auto Enrolment?
Auto enrolment requires employers to automatically enrol eligible employees into a workplace pension scheme, contributing towards their retirement savings while ensuring compliance.
📋 Key Responsibilities for Employers:
1) Assess Workforce Eligibility:
Eligible Employees: Includes those aged between 22 and State Pension age, earning over £10,000 annually.
Non-Eligible Employees: Have the right to opt-in and receive employer contributions.
Entitled Workers: Can join the pension scheme without employer contributions.
2) Contributions:
For the 2024/25 tax year, the total minimum contribution is 8% of an employee’s qualifying earnings, with at least 3% contributed by the employer and the remaining 5% by the employee, in line with strategic finance support and payroll requirements.
3) Communication:
Inform your staff in writing about their auto enrolment rights, including details on how the scheme works, contributions, and their right to opt-out.
4) Declaration of Compliance:
Submit a declaration of compliance to The Pensions Regulator (TPR) within five months of your staging date or duties start date, ensuring all compliance protocols are met.
5) Re-Enrolment:
Every three years, employers must re-enrol employees who have opted out back into the pension scheme and submit a re-declaration of compliance.
6) Opting Out:
Employees have one month from being auto-enrolled to opt-out and get a refund of contributions. After this period, they can leave the scheme but cannot reclaim contributions.
At Bowdon Accounting Services, we are dedicated to providing timely, clear, and strategic financial support, including tax planning, cashflow management, and risk management. To explore these services further, you can schedule a discovery call via this link: https://zcal.co/i/fSLS0r60
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