Auto enrolment, part of the government’s workplace pension reforms, has been introduced to combat the issue that people are living longer and healthier lives but are saving less for their retirement.
As the ratio of workers to those of a pensionable age continues to fall, the government has estimated that as many as seven million people are currently not saving enough for an adequate retirement income.
As state pensions will be unable to bear the increasing numbers of retirees, The Pensions Act 2008 established new duties to redress this imbalance. Automatic enrolment, as part of these changes, began to be rolled out amongst businesses in October 2012.
The changes brought about by the new legislation are complex and require early education and preparation to allow businesses to gain a full understanding of how to capitalise, adapt, and ensure compliance.
With 32,000 businesses staging during the 2014-2015 financial year, the numbers seeking support and advice about the legislative transition will increase considerably.
How is your staging date calculated?
• Your staging date is based on the PAYE data provided to The Pensions Regulator (TPR) by HMRC on 1st April 2012 – employers will then be contacted by TPR 12-18 months before their staging date and then again 3 months before their staging date.
• Your PAYE count is not necessarily equal to your number of employees.
• You may have an earlier staging date if you have at least one person paid under a PAYE scheme larger than the employer’s “main PAYE” (e.g. parent company’s PAYE reference).
A secure cloud-based managed payroll system that takes care of everything – from data input and processing through to online distribution and digital reporting, as well as payments to employees, HMRC and pension companies.