Workplace Pension - Are you prepared for 6 April?

 
Your duties

By law, the total minimum contributions employers must pay into their staff’s workplace pension schemes increase on 6 April 2019. Employers need to be ready for this increase, to make sure they’re paying the correct amounts into their staff’s schemes.

Are you ready?

From 6 April, the total minimum contribution including employer and employee payments must be no less than 8% of qualifying earnings. Employers must pay a minimum of 3%, with their staff making up the rest of the 8%.

Employers can choose to pay more than their 3% minimum contribution if they wish. If they do, their staff won’t need to pay in as much to meet the total minimum contribution of 8% of qualifying earnings.
 

Employers should be ready to calculate contributions using the new rates the first time they pay their staff from 6 April.

Next steps

1. it should be simple for the new rates to be applied, but employers should prepare now by contacting their payroll and software service providers to make sure their systems are ready it is recommend that employers write to their staff to let them know about the increase in contributions
2. Please note, if employers already contribute more than the total minimum of 8% into their staff’s workplace pension schemes, or they use a defined benefit (DB) scheme for automatic enrolment, they don’t need to take any action. And if any staff have asked to be put into a scheme that employers don’t pay into, the increases don’t apply to them.

If you need any help with payroll then please get in touch. Contact us.