Auto-enrolment is a compulsory process that every employer must follow to give their employees the opportunity to become a member of a qualifying workplace pension scheme. Where membership is required by auto-enrolment, both the employer and employee must pay contributions at least to the minimum level. However, it is possible for employees to opt out of joining the workplace pension an in this instance, neither the employer nor the employee are required to make a contribution.
The auto-enrolment process also applies to charities, other non profit making organisations and those who employ domestic staff such as a nanny or gardener.
As an employer you must:-
- be ready for auto-enrolment by the date set by the government, known as the staging date
- communicate with all employees how auto-enrolment affects them
- put in writing to all employees details of their membership to the workplace pension
- from this date you must make eligible employees members of the workplace pension scheme, unless they have chosen to opt out.
- pay contributions for and on behalf of your employees
- send to the Pensions Regulator within five months from your staging date, your completed “declaration of compliance”
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