As a result of Government reforms, between 2012 and 2018 all employers will have to provide a qualifying workplace pension, automatically enrol all of their employees who meet certain criteria and contribute a minimum of 3% of qualifying earnings (ie. earnings between a lower and upper limit) or make an equivalent contribution.
Employers are being phased in to their new duties between October 2012 and early 2018 as are the minimum employer contributions which will by 1st October 2018 have risen to a minimum of 3% of qualifying earnings with a minimum total employer and employee contribution of 8% of qualifying earnings.
What most employers do not realise is the additional administrative burden that comes with such legislation and it’s a burden that increases with your payroll frequency. Maintaining accurate records, communications and annual scheme returns can become a full-time job. Failure to maintain a compliant Workplace Pension scheme could result in a fine of up to £10,000 per day, dependent on the number of people you employ.
The specialist advisers at JFP Financial Services Ltd can work with you to select a suitable provider and scheme that most closely meets your needs.
To discuss this further, please contact us.