In 2008, a new workplace pension law came into place – with legislations in order that could help workers build up a pension fund for their retirement. One of the most important legislations that fell under the umbrella of the new pension laws, was auto enrolment. Auto enrolment would allow workers and employers to add a monthly amount into the pension pool. At the time, the goal was to get all companies to enrol all of their eligible employees before 2018.
At TFMC Southend , we understand that auto-enrolment is a time consuming and complicated subject. That is why we at TFMC offer Auto Enrolment Southend.
Auto Enrolment Southend – What is it exactly?
To determine if your employees are eligible or not – you will need to check the criteria laid out by the Pensions Regulator:
- If the employee is over 21 years old, and below state pension age.
- Earns more than £9,440 a year
- You will be automatically enrolled by your employer
However, the rules are not black and white. If you are over 21 and below state pension age – but you earn less that £9,440 a year: you are automatically ineligible for auto enrolment. However, you do have the right to opt-in if you are between 16 and 75 years of age and you earn £5,668 or less per year.
The current contribution is 2 percent of the worker’s salary each month for employers. For employees however, it is three percent. This is up from 1 percent for employers/1 percent for the employees. From the tax year starting in 2019 , it will be 5 percent from the employees, and 3 percent for the employers
At TFMC Southend, we offer to take care of all mandatory Auto-Enrolment Farnborough tasks for your company, included but not limited to:
- Staff assessments to determine the category of each worker.
- Managing all contributions and correctly timing these payments.
- Contacting employees and keeping them updated on any changes in the terms
- Completing a declaration of compliance to confirm to the Pensions Regulator that you have fulfilled your legal duties
- Keeping the records related to Auto – Enrolment Farnborough
Call us today for more information on how we can help you build a better retirement for your employees.