Workplace Pensions Auto-enrolment

Our Payroll service is fully compliant with Workplace Pensions Auto-enrolment. For questions on workplace pensions employEES should contact the DWP Workplace Pension Information Line, Tel 0345 600 1268. EmployERS should contact the Pensions Regulator

Although it is possible to register with The Pensions Regulator yourself, it is time consuming and carries penalties for non compliance. Employers must complete a declaration of compliance (registration) or a re-declaration of compliance (re-registration) (this must be done every three years). Why not let us take care of the worry of registration for you, while you get on with running the business, we would be happy to assist.

You can choose your own pension provider. Although we do not recommend any particular pension provider, Loughran & Murphy accountants are registered as a NEST Delegate Organisation. We have already set up accounts for many of the employers who use our payroll services. We can provide immediate assistance to any employers using Nest through our account. NEST was established by the government and is free for employers.  NEST is the only scheme that has a public service obligation to accept any employer. If you need any help please contact me. Dermot Murphy Tax Partner.

The minimum contributions that most employees and employers pay and the dates when they must increase are:

to 5th April 2018 1% and 1% - for the tax year 6th April 2018 to 5th April 2019 2% and 3% - from 6 April 2019 onwards 3% and 5%.

Are you ready?

From 6 April 2019, 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.  

Date effective

Total minimum contribution

Employer minimum contribution

Staff pay the balance

Current rates

5%

2%

Up to 3%

6 April 2019

8%

3%

Up to 5%

Employers must be ready to calculate contributions using the new rates the first time they pay their staff from 6 April 2019.