Managing auto-enrolment can weigh you down when you are dealing with the daily stresses of running a business. Jameco Group is here to take the pressure off and ensure you remain compliant.
Welcome to Jameco Group, automatic enrolment services
Up until 2012, it wasn’t mandatory for employers to provide workplace pensions. But since then, all employers have a legal duty to enrol their staff in a suitable pension scheme and make contributions.
If you’ve never handled auto-enrolment before, it can be a daunting prospect. As with all legislation around pensions, it can be a complex subject to get your head around at first. It is also extremely time-consuming, especially for busy directors that are struggling to find time in their day.
Fortunately, Jameco has got your back. Our friendly team are waiting to step in and take the strain, so you can be confident in fulfilling your legal duties and save hours of administration tasks.
Contact Jameco today to find out more about our auto-enrolment services and to arrange a consultation.
What is auto-enrolment?
Thinking of employing your first member of staff? You’ve probably heard about automatic enrolment, so what exactly is it?
In recent years the government have made it mandatory for employers to provide a qualifying pension scheme, pay pension contributions and keep up compliance with the pensions regulator. This initiative is to take the pressure off of the state pension pot and help people save comfortably for retirement.
The employer must check if new employees meet auto-enrolment eligibility criteria. Entitled workers don’t have to request to opt in; they will be automatically enrolled. From there on, the employer and the employee will pay the minimum mandatory pension contributions.
Although eligible jobholders are automatically enrolled into an employer’s workplace pension scheme, they may choose to opt-out within one calendar month. They can always choose to rejoin the scheme and make contributions at a later date.
What businesses does auto-enrolment apply to?
All employers, including self-employed sole traders, must comply with automatic enrolment duties and provide a qualifying workplace pension scheme. This ensures no workers are discriminated against and prevents employers from abusing the scheme.
Automatic enrolment now helps more workers than ever to save for their pension, rather than being solely dependent on the government when they reach retirement.
Our auto-enrolment services
At Jameco Group, we understand that setting up a workplace pension can be daunting, complex and time-consuming, especially for startups and SMEs with minimal experience as employers.
Our experienced payroll team can efficiently administer your pension scheme, ensuring ongoing compliance and seamless communication with your chosen pension provider. We will handle the entire process, from identifying eligible employees to registering your business and scheme with The Pensions Regulator.
Here’s how we can help your business:
- Employee Communication: Our team will effectively communicate with your staff, keeping them informed and up-to-date on all aspects of the auto-enrolment process on your behalf.
- Auto Enrolment and Administration: We will automatically enrol eligible workers and new hires, as well as provide ongoing administration for a fully integrated auto-enrolment solution. This includes removing any staff who decide to opt-out and advising on salary sacrifice to minimise costs.
- Financial Impact Assessment: Our experts can assess the financial impact of the pension scheme on your business and provide valuable insights into contribution levels while ensuring compliance with enrolment regulations.
Get your workplace pension scheme in order with Jameco Group
Our experts have extensive knowledge and experience in navigating the complexities of pension schemes. We are committed to understanding the unique needs of your business and providing tailored solutions that align with your goals.
Contact us today to discuss how Jameco Group can support your business and ensure a smooth and compliant auto-enrolment process.
How much does auto-enrolment cost?
Deductions are removed each pay period as part of auto-enrolment, and employer contributions are a minimum of 3%. Eligible workers have to make minimum contributions of 5%. So in total minimum contribution must be 8% of qualifying earnings (which includes tax relief).
This provides all employees with a pension pot for when they reach state pension age.
Who is exempt from auto-enrolment?
As with all government legislation, specific criteria and exemptions can be subject to change, but there are circumstances where employees are exempt from auto-enrolment. Here are some examples:
Individuals who are under the age of 22: Auto-enrolment typically applies to employees who are aged 22 or above but below the pension age.
Individuals who are above the pension age: Employees who have reached the state pension age are generally exempt from auto-enrolment.
Individuals who earn below the earnings threshold: Non-eligible jobholders are those that earn below the “earnings trigger” threshold, which is a specified amount set by the government. Employees who earn below this threshold are not automatically enrolled but have the option to join the pension scheme voluntarily.
Are there fines for non-compliance with automatic enrolment?
In the United Kingdom, the auto-enrolment system is regulated by The Pensions Regulator. Employers have a legal duty to comply with the auto-enrolment requirements. If an employer fails to comply, The Pension Regulator has the authority to take enforcement action, which can include issuing fines. The fines are issued as Fixed or Escalating Penalty Notices (FPNs or EPNs), depending on the severity and duration of non-compliance.
Accurate at the time of writing in 2023, the fine structure in the UK is as follows:
Fixed Penalty Notice (FPN): A fixed penalty of £400.
Escalating Penalty Notice (EPN): If the non-compliance continues after receiving an FPN, an EPN can be issued. EPN penalties vary, based on the number of employees but range from £50-£10,000 per day.