Does managing and administrating your workplace pension take up time you could better spend on growing your business?
Since the end of 2017, all UK businesses employing at least one person have been legally required to implement a workplace pension scheme. They must offer staff a pension that complies with the government’s regulations, automatically enrolling workers meeting the age and earnings criteria, and making a minimum contribution for all eligible workers based on pre-tax earnings over £5,876 pa.
The minimum contributions employers and employees are required to make are being introduced gradually over time. At the moment, a total minimum contribution of 5% is required – made up of a minimum 2% contribution from the employer and 3% from their employee.
But from next month, workplace pension contributions are set to increase – both for employees and for their staff. With effect from 6th April 2019 onwards, the minimum total contribution will rise to 8% – to be made up of a minimum of 3% contribution from the employer and 5% from their employee.
If your business operates a workplace pension scheme, you will have to do two things:
Communicate the changes to your staff
Ahead of implementation, you’ll need to make your staff aware of the new contributions both parties are required to make. Employees will see a small reduction in their April pay packet, and if this isn’t explained ahead of receipt, it’s likely to lead to queries which will need to be addressed individually.
Ensure correct contributions are paid on time
It’s your legal responsibility to make sure the correct pension contributions are paid into your staff pension scheme on time. If they’re not, you run the risk of being fined by The Pensions Regulator.
In short, this change means taking more time away from your business to manage and administrate your workplace pension. But there’s another far more time-efficient option:
Let Inca Look After Your Workplace Pension – Leaving You Free to Work on Your Business!
If you’re an Inca client, you have access to a fully managed service that takes care of all aspects of managing and administrating your workplace pension and payroll.
Leave it to us to:
- Communicate direct with your staff, keeping them fully updated whenever workplace pension contribution rates change.
- Ensure correct pension contributions are debited by your pension provider – we can even prepare and upload information direct to key providers including NEST and The People’s Pension.
- Take responsibility for all administration associated with new starters. We’ll add any new employees to your payroll and to your workplace pension – after first ensuring they’ve been properly consulted about their right to opt out.
- Make sure any staff who leave are promptly removed from your payroll and from your workplace pension scheme, so no further deductions are made.
What’s more, our fully managed service means you and your staff can benefit from our new electronic payslip solution. No more payslip distribution to administer. Using GDPR compliant software, we can send out password protected e-payslips directly to your employees.