We offer pension auto enrolment services as part of our bespoke suite of payroll solutions. Since 2012, UK businesses have been legally obliged to offer a workplace pension to all employees. But as of February 2018, it’s no longer enough to offer a pension to new employees. You have to enrol them automatically. Hence the term auto enrolment.
Fail to comply with this and the consequences can be serious, with daily fines of up to £500. Spare yourself the costs and embarrassment associated with non-compliance. Allow our team of experienced payroll specialists to take care of your automatic enrolment.
What Is Pension Auto Enrolment?
It is a legal requirement for all UK businesses that employ at least one person to automatically enrol new employees in a workplace pension scheme. This is a crucial part of the onboarding process, and one that many employers grapple with. You may wonder which employees are eligible for auto enrolment, whether they’re obliged to remain in your workplace pension scheme, or how to manage your auto enrolment process. Not to mention the fact that all of the processes involved in enrolment can be incredibly time consuming.
This is where we come in. Our team of payroll experts can manage your auto enrolment scheme on your behalf, leaving you with more time to focus on the business-critical aspects of your operations.
How Does Pension Auto Enrolment Work?
Automatic enrolment is an example of ‘nudge economics’. It is designed to shift the onus from employee to employer when it comes to setting up a workplace pension. Setting up a qualifying work place pension scheme can be difficult, especially for new and smaller businesses. There are various employer duties and strict responsibilities to staff that you’ll need to fulfil in order to remain compliant.
Auto Enrolment – Who Is Eligible?
If they meet this eligibility, employees must automatically be enrolled into a pension plan by their employers. Otherwise, employers will have to face the cost of non-compliance. There are also pension auto enrolment exemptions. Under current legislation, any employee earning £5,876 per year or less is also entitled to join a scheme. However, they do not need to be automatically enrolled. This may change in the future.
Pension Auto Enrolment Contributions
By law, employers are obliged to make minimum contributions to the pensions of auto enrolled employees. Minimum contributions are typically based on an employee’s qualifying earnings. These include not only wages, but overtime, bonuses and commission payments.
Mandatory benefits like statutory sick pay, maternity, paternity and adoption pay are also included. The minimum overall contribution is currently 8% of an employee’s salary. As an employer, you are responsible for paying in three percent of qualifying earnings under current pension auto enrolment legislation. You can, of course, pay more if you choose. The remaining 5% comes from the employee’s own contributions.
Auto Enrolment Opt Out explained
Under pension auto enrolment regulations, employers are also obliged to allow employees to opt out. There are many reasons employees may choose to do this.
Whatever the employee’s reasons, the employer needs to be able to facilitate an opt out, however must not coerce the employee to opt out. Instead, they should provide information that details the options available.
The Key Benefits of Auto Enrolment Management
A fully managed auto enrolment service allows you to meet your auto enrolment obligations to your employees. Without all the distraction and administrative hassle of doing it all by yourself. With expert guidance and assistance, you can get a tailored auto enrolment plan that’s built around your needs.
The benefits of this include:
Pension Auto Enrolment Services
from FC Payroll Solutions
At FC Payroll Solutions, we are your one-stop shop for all your auto enrolment needs. We make it easy to manage your pensions and stay on the right side of compliance. Our bespoke auto enrolment services are built around your needs, fitting in seamlessly with your operations.
Why Choose Us?
We work with you to take care of all the admin surrounding your pension scheme and automatic enrolment.
Our auto enrolment service takes care of the hard work for you, supporting you and your employees every step of the way. Get in touch to find out more.
What do our clients say?
“The Payroll Team at Francis Clark have offered unwavering support for our business throughout lockdown and beyond. They have remained on hand, to answer queries, process payroll and maintain business as usual whilst they have had to rapidly learn new and constantly changing regulations for the Covid-19 government schemes.”
“I was recommended to FC Payroll Solutions by our Independent Financial Advisor at a time when I was struggling to assimilate yet another change introduced by HMRC. After an initial interview I was confident that FC Payroll Solutions would provide a payroll service for us in a professional and courteous way, and that has proved to be the case. I would unhesitatingly recommend them to others.”
“Your payroll staff are always available at the end of a phone or by email; nothing is too much trouble and the accuracy and professionalism is superb. In the time you have been looking after us we have built an excellent relationship between ourselves and your payroll department. We truly do not know how we managed before asking you to take on our seven payrolls and wish we had done it years ago.”
“The Charity has outsourced its payroll to FC Payroll Solutions for a number of years now. We have always found FC Payroll Solutions to be responsive to our needs and undertake our monthly payroll promptly and efficiently. We would gladly recommend FC Payroll Solutions to others who wish to outsource their payroll.”
“We have been relieved of the burden of ever-increasing compliance with HMRC’s requirements for a very modest cost.”
“The team consistently deliver good customer service by answering both simple and complex queries in a timely manner, being clear and concise to non-payroll people! We would recommend their services as they provide the reassurance that our employees will have their pay processed correctly, compliantly and meeting all the necessary HMRC regulations. FC Payroll ultimately deliver on what they promise, making it a pleasure to work with them.”
“FC Payroll Solutions have provided an excellent and seamless end-to-end service for Ben Ainslie Racing Limited since we started the company. Outsourcing this critical function is always done with a certain amount of trepidation but their professionalism and capability, including answering queries and managing last minute change requests, has been exemplary.”
“I would recommend FC Payroll Solutions to any new or existing business, as they provide a very high and professional quality service, and are always available if you require assistance and advice. FC Payroll Solutions have been very helpful by answering my numerous questions. Fast service, really easy to work with, providing excellent management of payroll, tax and any NI issues.”