It’s nearing 5 years since Automatic Enrolment was introduced in October 2012 and already 5 months since the deadline in April 2017 for all existing firms to have enrolled their staff. But the deadlines are not over yet: another looms in 5 months time…
By February 2018 all new employers MUST be enrolled to avoid the penalties of non-compliance. At MSP we are all registered and experienced in this process. We also have the correct software to deal with any pension provider and we already have clients using most of them. To date MSP, like the bulk of the payroll industry, has managed to ensure that its clients stage on time.
At MSP we do not provide advice on pension schemes but we are expert on the decisions that need to be made in order to enrol. Being a payroll bureau we have a check sheet setting it all out so that, when the pension provider has been selected, the information is available for the pension to be set up and run. This checklist is available on request.
The decisions referred to above can have serious cost effects and have to be made by the employer. For example, should the full net salary be included in the pension calculation or should such things as overtime be excluded.
As said above, MSP do not advise on pension providers. However, a word of caution is appropriate. It is the duty of the employer to choose its workplace pension which means selecting the most suitable. With contributions of 1% for both the employer and employee, the cost has been treated by both as a minor expense but, as the employee contribution goes up in 2018 and 2019 staff may start to ask if the best possible choice has been made by their employers. It is wise, therefore, to record the reasons behind your selection.
Our Head of Payroll, Kate Furley is more than happy to address any queries you may have on 01252 733683 or at