All employers must have a workplace pension plan in place under the Government’s automatic enrolment scheme.
Any new employers will be required to comply with auto-enrolment from the start date of the employment of its new workers.
Going forward auto-enrolment contributions will continue to increase year-on-year for employees and employers using the following rates:
|Date||Employer minimum contribution||Employee minimum contribution||Total minimum contribution|
|April 5 2018||1%||1%||2%|
|April 6 2018 – April 5 2019||2%||3%||5%|
|April 6 2019 onwards||3%||5%||8%|
Employers who fail to enrol their staff into a workplace pension scheme could face significant penalties ranging from a flat £400 fine up to £10,000 a day penalty or even imprisonment for up to two years for the most serious failures.
While the staging dates for auto-enrolment have now passed it is essential that employers keep on top of their responsibilities. At TW, we continue to support businesses with their pension requirements, so please contact us if you would like assistance.