Answering 5 Of The Most Common Questions About Auto-Enrolment
When it comes to auto-enrolment for pension plans and auto enrolment pension companies, there is often a little confusion over what this actually means. It is vital that both employees and employers understand the basics of auto-enrolment, so here, we are looking at the five most common questions asked. Read on to find out more.
The staging date is the date on which you will need to provide a pension for automatic enrolment.
Who Are My Eligible Employees?
There are several criteria your employees will need to meet in order to be eligible for auto-enrolment. This includes their age; they must fall between twenty-two years old and state pension age. They will also need to be classed as working in the UK and their earnings will need to be assessed. There is a minimum qualifying earnings threshold that your employee will need to meet.
What Records Do I Need To Keep?
There are certain records that you will need to keep as an employer in order to be compliant with the regulations laid out. You must have a full audit trail of the appropriate assessment criteria, your employee communications, and the contributions which have been made. You must also keep a record of payments that have been made to the pension provider. This information will need to be used if the Pension Regulator has questions for you.
We Already Have a Pension Scheme. Can I Just Use That Scheme?
If your employee already has a pension scheme in place, they may wish to use that instead. This is possible, but it will need to be a qualifying scheme. The stipulations for what schemes are allowed or disallowed is laid out by the Pension Regulator. Using this framework, you will be able to see if the scheme is suitable for auto-enrolment.
What If an Employee Does Not Want To Make Contributions?
If an employee does not wish to make contributions for any reason, they will still have been automatically enrolled. However, once this has happened, they will have the option of choosing to opt out of scheme membership. It is important for employees and employers to note that this will only be possible during a set and specific time period. This is the ‘opt-out period’, and outside of this time frame, the employee will be unable to do this.
Now that you know more about auto-enrolment, you may be interested in looking for auto enrolment pension scheme providers. eSlip Payroll can help - get in touch to discover more about the UK auto enrolment pension scheme and how we can support your employees in this.
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