What is Auto Enrolment?
The government is introducing a new law to make it easier for people to save for their retirement, rather than relying on the state pension. The law will require all employers to enrol their workers into a qualifying workplace scheme if they are not already in one.
Millions of employees are missing out on a company pension simply because they haven’t signed up for their employer’s scheme or are unaware it exists. Auto enrolment will make sure every eligible employee has the opportunity to benefit from a workplace pension.
Automatic enrolment started from October 2012, but will take 5 years to complete. Employers are required to join depending on the size of their organisation. A staging calendar is available on The Pensions Regulator website, from this you will be able to see what date you need to be compliant by.
How will this affect employers?
- You must automatically enrol all eligible employees in your workplace pension scheme. Eligible employees are:
- Not already in a workplace pension scheme
- Are below state pension age
- Are at least 22 years old
- Work in the UK
- Earn more than £8,105 a year
How does this affect Selima Payroll?
Clients who use our Payroll software have been sent detailed documentation explaining the changes we have made; the new functions mean that our software is now fully compliant. Much of the information required to assess a workforce already existed within our payroll software. Our development team created additional fields and brought key information together in a single place to simplify the assessment process and allow our customers to easily create search results, reports and exports.
Although our software is now compliant, employers will still need to fully understand pension’s regulations and may need to seek guidance on workplace schemes. You will find valuable information on the Pensions Regulator’s website.