Workplace Pensions are the Law. According to the Pensions Act 2008 every UK employer must offer a workplace pension to their employees. Penalties for non-compliance start at £400 and can go up to £10,000.
We are here to help you with advice and the Morgan Menzies workplace pension solution.
Some questions and answers:
Does this affect me?
If you employ staff, yes – you’ll need to set a workplace pension scheme and make contributions to the pension fund for eligible employees.
But my employees are paid below the lower earnings threshold (£5,876 per year in 2017-18). Do I still have to set up a workplace pension scheme?
Yes. By law you must give your employees the option to join the scheme. You’re not obliged to contribute to their pension fund unless they are paid more than £5,876 per year (£113 per week).
What if I’m a company director and don’t employ any other staff?
If your company pays you a salary above the National Insurance threshold (£8,424 in 2018/19), you should be registered for PAYE and the Pensions Regulator will contact you. You’ll have the choice either to set up a workplace pensions scheme or to apply for exemption.
What should I do when I get a letter from the Pensions Regulator?
Don’t ignore their letters. Contact us straightaway with the details – for example, let us know if they’ve given you a ‘staging date’. We’ll advise you on what needs to be done.
For an annual fee we can set up and run a fully-compliant scheme for you and ensure that you don’t get any penalties. This will run alongside your payroll scheme.
If you don’t employ anyone else, we can apply for an exemption for your company.
How will you set up and run my workplace pension scheme?
1. We’ll set up your scheme with NEST, the government-run pensions provider, and register it with the Pensions Regulator.
2. We’ll work out which employees should be automatically enrolled and which should be invited to join the scheme. We’ll also advise you about employees who want to opt out.
3. Each month we’ll calculate the employer and employee contributions, organise deductions, adjust payslips and keep up-to-date records for you and the Pensions Regulator.