The Pensions Act 2008 introduced major reforms to workplace pensions. Under these reforms all Employers in the Uk must offer a qualifying workplace pension to their workers. All eligible workers must be automatically enrolled into the chosen scheme. The Employer is required to pay a minimum level of contribution. Starting at 1% climbing annually to 3% and the Employee similar, starting at 0.8% climbing annually to 4%.
Implementation commenced in 2012 with the largest Employers and roll out is staggered. It is important SME’s are aware of this impending change. Not only from a cost perspective but also a process. If you are unsure we would suggest you speak to your Accountant in the first instance or contact us.