If you employ people who are paid through your company payroll then you will need to organise a pension for them. This is known as a workplace pension or auto-enrolment, you may have seen the ad on TV reminding you about it.
How Does The Workplace Pension Scheme work?
A percentage of your employee’s pay is put into the pension scheme automatically every payday.
In most cases, the employer also adds money into the pension scheme for the employees who may also get tax relief from the government.
By 2018 all employers must provide a workplace pension scheme. This is called ‘automatic enrolment’.
The employer must automatically enroll employees into a pension scheme and make contributions to their pensions if all of the following apply:
- They are classed as a ‘worker’
- They are aged between 22 and State Pension age
- They earn at least £10,000 per year
- They usually (‘ordinarily’) work in the UK (read the detailed guidance if you’re not sure)
How Do You Set Up a Scheme For Your Employees?
There is a myriad of schemes out there but which is the best? Watermill Accounting helps you organize the whole pension scheme. Firstly it provides you with a report recommending 6 suitable schemes, then it sets it up and sends the information to your payroll provider. For a free consultation on how to set up your auto-enrolment workplace pension scheme please contact us.
Watermill Accounting Limited,
Future Business Centre, Kings Hedges Road,
Cambridge, CB4 2HY