As a result of Automatic Enrolment, millions of people now have a workplace pension. Find out how this applies to you.
The law on workplace pensions has changed. Under the Pensions Act 2008, every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called ‘Automatic Enrolment’.
Automatic Enrolment applies to all employers who have at least one member of staff. It doesn’t just apply to businesses; if you employ someone directly to work for you – like a cleaner, personal care assistant or nanny, for example – you are an employer and will need to ensure that any eligible employees are enrolled into a workplace pension.
To find out if it applies to you, visit The Pensions Regulator’s website and use the duties checker. This tool will ask you a few short questions about your employees, to work out which duties apply to you and when. The duties checker will give you tailored help and guidance through the steps to complete any Automatic Enrolment duties you may have.
If you deduct income tax and National Insurance contributions from the wages of the person you employ, then you are usually their employer. If you have used an agency to hire the person and the agency pays their National Insurance contributions, the agency is the employer and you don’t need to do anything. Find out how Automatic Enrolment applies to you using the duties checker on The Pensions Regulator’s website.
If you need further guidance on whether you may be considered an employer or not, read our page still unsure if I’m an employer.
*The PAYE reference can be found on letters you have received from The Pensions Regulator about Automatic Enrolment. Alternatively, it can be found on the letter HMRC sent you when you first registered as an employer or from your payroll software package.
The Pensions Regulator is a public body set up by the UK Government to regulate work-based pensions. There is information and help available on their website and they write to all employers to let them know when their duties start providing guidance on key tasks along the way.