Information on Working Pensions for Employers.
What is Auto-Enrolment? – This is the new Government legislation that requires all employers to make sure there is a pension scheme in place for their employees. Employers must also enrol their qualifying employees and contribute to their pensions. This is to ensure that all workers can save for their retirement.
What if I dont agree with this? – There are costly fines issued by the Pensions Regulator of a £400 fixed fine and £50 for every day thereafter that you do not comply.
How much do I have to contribute into the pension? – You will have to pay a small percentage of your employee’s Gross salary into their pension – this should not be more than 3% but if the agreed salary is in Net then you could also have to pay your employee’s contribution, these amounts are slowly being increased.
Who qualifies? – Anyone aged between 22 and State Pension Age who earns above the (current) £10,000.00 pa. Also known as an “Eligible jobholder”
Are Nannies Included? – Yes
What if my Nanny does not qualify? – You will still need to have a scheme in place for them to choose to join as is their right but depending on their age and current salary, you may not have to contribute.
Can I encourage my Nanny to not join the pension scheme? – No, this is illegal
Can Payroll companies help with this ? – Yes, usually at a small addition to the fee you will already be subscribing to for payroll services.