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Follow on Google News | Auto Enrolment – How does it affect you?By: EKW Group - PAYEpeople The Pensions Regulator, you’ll be no-doubt pleased to hear, is "Committed to increasing confidence and participation in work-based pensions" and wants to ensure that when we reach pensionable age we have a pension fund in place to let us see out our days without becoming a drain on the Government’s stretched purse strings. To this end every UK employer must comply with the law on workplace pensions and automatically enrol their staff into a suitable scheme. Rather than trying to stipulate a single date for all businesses to start "auto-enrolment" The cost of non-compliance is frightening. Where an employer has failed to comply with an original compliance notice and subsequent fixed-penalty notice there will be daily escalating penalties as seen in the table here. Where would your company sit? Employees in PAYE scheme Daily Rate 1 – 4 £50 5 - 49 £500 50 - 249 £2,500 250 – 499 £5,000 500+ £10,000 And the cost of the scheme itself? You must automatically enrol all staff who are aged 22 to state pension age who are working in the UK and earning over £10,000 per year. Staging Date Minimum Employer Contributions Total Minimum Contributions To September 2017 1% 2% October 2017 to September 2018 2% 5% October 2018 onwards 3% 8% How much will you have to contribute depends on your staging date. Ask yourself how many people have 8% being paid into their pensions. As well as making these contributions and setting up the scheme employers will have a vast amount of administration in managing the auto-enrolment pension scheme so my advice would be to outsource the whole process to a specialist provider so you can get on with running your business. Download our guide today. (http://www.payepeople.co.uk/ End
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