MEDIUM-sized businesses across Northamptonshire are next in line for the Government’s pensions revolution.
Companies employing between 50 and 60 staff need to start the detailed planning for joining their workforce to a pension, as their key staging dates approach over the next 12 months.
Employers have to pay into a pension for all qualifying workers who earn more than £192 per week (£833 per month).
MEDIUM-sized businesses across Northamptonshire are next in line for the Government’s pensions revolution.
Companies employing between 50 and 60 staff need to start the detailed planning for joining their workforce to a pension, as their key staging dates approach over the next 12 months.
Employers have to pay into a pension for all qualifying workers who earn more than £192 per week (£833 per month). The contributions start at a modest one per cent of qualifying pay for both employer and employee, rising over time to total eight per cent of pay.
David Williams IFA, Northamptonshire’s leading firm of Chartered Financial Planners, has already been working hard with corporate clients to help them prepare for the challenges this auto-enrolment process will bring.
The starting date for each employer depends on the number of people on their payroll at April 2012. The roll out started in October 2012 with Britain’s very largest companies. But it only becomes real for most medium-sized firms over the next year.
Organisations with 61 or more workers must comply from August 1. Those with at least 58 employees must have their pension ready by January 2015. By April 2015, every firm with 50 or more staff must offer a workplace pension.
And this is not just a pension issue. Employers will have a duty to assess and monitor their workforce each time they pay staff, imposing new strains on company payroll processes.
Pension providers are expecting employers to shoulder an increasing share of the administration supporting auto-enrolment. In some cases companies may even look to switch payroll providers to make the process easier.
Even with in-house payroll, HR and pensions teams, many large companies have found getting ready for auto-enrolment to be a big drain on management time. Smaller firms who lack this in-house expertise face an even tougher challenge.
David Williams IFA’s already has extensive experience in guiding firms through auto-enrolment. It is crystal clear that those firms who start planning at least six to nine months in advance of their start date have a much easier experience. They will also end up with a wider choice of pension providers and potentially more accommodating terms.
Start the process by contacting David Williams IFA for a free auto-enrolment briefing, which will allow you to assess your options.
Contact Stephen Womack on 01604 621302 or email for more information.