A London accountant such as Royds Accountancy can help you with many services such as Automatic Enrolment.
Over the years, the UK has seen revolution in the laws governing the workplace. Laws have been passed to provide a conducive work environment for all employees, in all organizations, across the country. The Pensions Act 2008 has perhaps been the most drastic of these laws. It dictates that every employer in the United Kingdoms is obliged to enroll designated members of the work force in a pension scheme and make contributions towards it. This policy is popularly known as Automatic Enrolment’. Whether you are a CEO of a big corporation or a small scale entrepreneur, you are entitled to obey the Automatic Enrolment’ policy, as long you have at least one person working under you. The introduction of this law was made necessary by the fact that approximately seven million people in the UK don’t save enough for retirement, and thus end up relying on government aid in their old age.
Before putting your employees in an Automatic Enrolment’ pension scheme, it is important for you as an employer to understand your role in managing a good quality scheme by hiring an automatic enrolment accountant. The very first step towards fulfilling this law is determining your staging date (the date the law will start affecting you). You can find this out by visiting The Pension Regulator’s website, www.thepensionregulator.gov.uk/employers/staging-date.aspx and entering your PAYE reference. Afterwards, you will need to offer one of your workplace pension schemes to be used for automatic enrolment. Next, you need to determine which of your employees are eligible for the said scheme. According to government laws, an employee is eligible for a workplace pension if he or she:
· Is aged between twenty two years and the pension age provided by the state.
· Has an annual salary of at least ten thousand pounds.
· Works within the UK
Once you’ve determined who your employees are, you need to determine who you need to place in the pension scheme. This can be approached based on seniority or age. Alternatively, you can consult with licensed pension scheme providers to help you decide who to put in the scheme. Remember that you, as their employer, is responsible for making regular contributions into their pension pots’. The least amount that one can pay into this pension pots is one percent of their annual salary. As an employer, you will of course need to inform your employees about automatic enrolment beforehand. After executing all the above steps, you are required by the law to inform The Pension’s Regulator of the ways in which you’ve complied with the law.