The employer’s contribution for Auto Enrolment will rise to 3% of qualifying earnings from 6th April 2019. The total contribution will rise to 8%, there is no minimum contribution for the employee but their contribution should be sufficient to ensure that the 8% minimum contribution is made.
This is one of the many milestones in the roll out of Auto Enrolment that began in 2012. However, it may cause the most noise owing to the increase that employees will need to make to achieve the 8% minimum contribution. Are you ready and able to handle this?
At Payroll Masters our outsourced payroll management services include HR, which you may need to communicate this change to your staff, and help with the deciphering of the rules around Auto Enrolment. You can tackle this on your own by following this link https://www.thepensionsregulator.gov.uk/en/employers/managing-a-scheme/contributions-and-funding to guidance on The Pensions Regulator’s website or you could ask for our help. If you are unsure how to apply the tax relief method that is best for your staff, or have concerns over any of the other more technical aspects of getting your payroll right, we are here to help. We are based in Birmingham but work with clients and organisations of all sizes the length and breadth of the UK. Please talk to us for outsourced payroll services.