Pension Provision Guidance
The law on workplace pensions has changed. Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called 'automatic enrolement'. All employers must put employees into a pension scheme from their staging date. Your staging date is the date the law comes into effect for you.
Once you have chosen your pension scheme and worked out which staff must be put in, you'll need to pay money into your pension scheme every time you run your payroll. You'll also need to monitor your staff's circumstances in case your automatic enrolement duties change. Remember automatic enrolement is your legal duty and if you don't act you could be fined.
(information from www.thepensionsregulator.gov.uk).
What you need to do as an employer
The online Duties Checker will help you with your duties and responsibilities and assist you with your staging date. It will ask you some simple questions to help work out which legal duties apply to you. You will need to know your PAYE reference and your letter code, and if you employ anyone, their age and earnings.
Automatic enrolement is a continuing responsibility for employers. An employer's duties do not end after their staging date.
Each employer must:
1. Keep records of their automatic enrolement activities
2. monitor the ages and earnings of their new and existing staff
3. enrol staff and write to them
4. pay contributions to their pension scheme.
Responsibility for meeting these duties ultimately lies with the employer.
What we can do at CPS Payroll Ltd
Once you have set up your pension scheme, just let us know. As part of our payroll service we can automatically calculate pension contributions for both (if applicable) emploers and emplyees, for monthly, fortnightly and weekly payroll service.
Due to restrictions on advice and guidance, CPS Payroll cannot provide guidance or day to day management regarding compliance with legislation or adhereance to your individual staging date. For this information and for assistance with choosing a pension provider, please either seek independent financial advice, or alternatively look at NEST, which is the workplace pension set up by the Government.
Pension scheme administration fees
If you would like us to look after the administration and payments for your pension scheme there will be an additional monthly charge - please see fees below (from 1st April 2016). For any new pension provision a one-off set-up fee of £40 will apply.
|Employees enrolled||Monthly Cost|
What this covers:
Administration - The standard administration of a pension scheme includes the communication to and posting of the contributions to the individual pension scheme, and making sure that these are reconciled for the individual company, with the payroll deductions made.
Payments - This includes the deduction of and payment of funds from your payroll to your pension scheme. Please note that any delays caused by cleared funds not being available will incur fees as per our standard service provision.
Our pension scheme administration service does not include the general record keeping and monitoring of staff - this responsibility remains with the employer.