Minimum Contributions are Increasing Again – Are you Prepared?
Auto Enrolment contribution minimums are changing again this coming year. There are phases to the increases, with the first one taking place 6 April of this year. The next change will take place on 6 April 2019. Do you have a plan to make these changes?
If you have employees with a pension scheme for auto enrolment, you must make the required contribution changes to stay in compliance. There are many factors to consider when calculating contributions. Your staff salaries, commissions, bonuses, overtime, sick pay, maternity/paternity, are all included in the calculations.
Some employers have chosen to contribute more than the minimum, so if you are currently paying above the new minimum contribution of 3% you do not need to take any action. Any company that fails to increase to the new minimum of 3% or if an employer is late or non-compliant, will be subject to fines, penalties and even prosecution by The Pension Regulator. If you are late or non-compliant with auto enrolment, don’t delay any longer – The Pension Regulator is willing to assist companies to get back on track.
Using an online payroll provider can help you ensure compliance with auto enrolment and remove human error from the equation. Payroll technology has advanced significantly over the last 5 years and can integrate with your HR software to help streamline your payroll and benefits processes. Look for payroll providers who have a CIPP-certified staff, as this privacy and data protection training is vital to ensure compliance in your organisation.