MAP-Brochure-Single-Email

MAP-Brochure-Single-Email

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  Auto Enrolment madesimple for you.
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  3 Introduction 3 Auto Enrolment 3 The Employer 3 Non Compliance 3 The reasons for Auto Enrolment 3 The Key steps to Enrolment 4 Staging Dates 5 Contribution Rates 6 Planning time line 7 Workforce Assessment 7 QWPS (Qualifying Workplace Pension Scheme) 8 Communication 8 Monitoring and Managing Records and Data Table of contents Auto enrolment is a real challenge. Are you ready? If you haven’t heard of auto enrolment, you will. If you think you can ignore it, you cant. If you’re wondering if there is a simple solution, there is. Auto Enrolment made simple for you. MAP Enrolment Solutions can help An appointment with one of our consultants at your place of work will enable you to talk through the process and find the correct solution for your company. We have agreements with several companies who are able to provide a range of services that can be tailored to suit your circumstances and budget. The advantage you have with MAP Enrolment is that we give you choices, as we do not represent just one provider. We will work along side your accountant or financial advisor to ensure you are receiving the most up to date information. Your time for registering may not be for several months, however Auto Enrolment needs forward planning to confirm acceptance and avoid fines. Contact us today and arrange a no obligation consultation to find out more about how auto enrolment affects you.
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  Auto Enrolment From October2012 all businesses within the UK will be effected by Auto Enrolment. As a result all eligible employees are required to be enrolled within the Workplace Pension Scheme and make the relevant contributions. With this new law it is important that the employer takes the time to understand the responsibilities and duties associated with it. Not being prepared can prove time consuming and more importantly costly. The Employer Companies will be required to do the following: • Know when they need to be ready • Register with the regulator • Be aware that Pension schemes must comply with all regulations • Manage employee enrolment and contributions • Communicate • Keep accurate records Non compliance In the event of an employer not complying with what is required of them: £400 fine which will escalate for persistent failings - • 5-49 employees up to £500 per day • 50-249 employees up to £2,500 per day • 250-499 employees up £5,000 per day The reasons for Auto Enrolment Simply the Government can not afford to fund the state pension throughout life. Financial restraints mean people can no longer afford to save for retirement and as a result they will be dependant on the State Pension. Introduction Step 1 Staging Date Analysis Step 2 Workforce Assessment Step 3 Analysis of Existing Scheme Step 4 Communication of changes Step 5 Auto Enrolment of all eligible workers Step 6 Commencement of Contributions and administrations of payments Step 7 Registration with the tPR Step 8 On going Management, reporting, admin and storage The Key Steps to Enrolment 3
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  Employees Date 4,000-4,099 01June 13 4,000-4,099 01 June 13 3,000-3,999 01 July 13 2,000-2,999 01 August 13 1,250-1,999 01 September 13 800-1,249 01 October 13 500-799 01 November 13 350-499 01 January 14 250-349 01 February 14 160-249 01 April 14 90-159 01 May 14 62-89 01 July 14 61 01 August 14 60 01 October 14 59 01 November 14 58 01 January 15 54-57 01 March 15 50-53 01 April 15 Test for fewer than 30 01 June 15 to 30 June 15 30 to 49 01 August 15 to 01 October 15 Fewer than 30 01 January 16 to 01 April 17 To help businesses prepare for the changes associated with Auto Enrolment the process is being introduced in stages. The end date for all employers to have employees auto enrolled into a qualifying pension scheme is September 2016. Your staging date is determined by your Payroll run of April 2012. This date is fixed. The Staging Dates Auto Enrolment made simple for you. 4
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  Contribution Rates The totalcontribution starts at a level of 2% of earnings with 1% of this being an employer contribution. The contributions will increase in stages to 8% of earnings, with 3% of this being contributed by the employer by October 2018. Employers must contribute. *Including tax rebate on pension contributions *Quality Test – this is a test that will allow an employer to certify that they are meeting the minimum contribution requirements for a scheme under their AE requirements. It should be used where there is a mismatch between a DC pension definition of pensionable pay and that of qualifying earnings under AE requirements. It is run for 12 months from the staging date to the anniversary taking in all earning types (basic pay, commission, bonus, overtime) and will allow the employer to calculate if they have hit the 8% contribution rate on the threshold earnings levels of £5,668 and £41,450. October 12 – September 17 October 17 – September 18 Minimum Employee rate* 1% 3% Minimum employer rate 1% 2% Combined total rate (employee and employer) 2% 5% Total Contribution Employer contribution Pensionable Pay 9% of pensionable pay 4% No quality test required 8% of pensionable pay 3% Pensionable pay is at least 85% of the total pay bill for the workers. 7% of pay 3% All pay is pensionable 5
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  Auto Enrolment madesimple for you. Planning Time Line No of Ees Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 12 12 12 13 13 13 13 13 13 13 13 13 13 13 13 14 14 14 14 14 14 14 14 14 14 14 14 15 15 15 1000- 2999 120-1999 800-1249 500-799 350-499 250-349 160-249 90-159 62-89 61 60 59 58 54-57 Planning stage Implementation and testing stage Communication and employee engagement stage Run the solution Staging date and Enrol employees stage 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 6
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  Workforce Assessment Employees aredefined as Eligible, Non Eligible or Entitled Eligible Employees who are aged between 22 and State Pension Age earning above the Lower rate Income Tax Threshold (£9,440 p.a in 2013/14 terms reviewed annually). Non-Eligible Employees who are under 22, over 65, or those workers earning below the Lower Rate Income Tax threshold but above the qualifying earnings limit (£5,668 in 2013/14 terms). Entitled Employees earning below the qualifying earnings limit. Only eligible employees have to be auto-enrolled; however non eligible and entitled employees can opt-in (although the Company does not need to contribute in respect of entitled workers). Eligible employees can opt-out, but only after being enrolled and broadly speaking must be automatically re-enrolled on each third anniversary of the staging date. QWPS (Qualifying Workplace Pension Scheme) All Employers will be required to auto-enrol all eligible employees into a qualifying pension scheme. If a pension scheme can accept new members, the employer will need to decide if it is to be used as a qualifying scheme for auto enrolment purposes. How does a scheme qualify • Staff can automatically opt into it • The scheme has a “default” investment option • There is an opt out facility Worker classification 16 and under 22 Age between 22-SPA* Over SPA* under 75 Earnings Below lowest level earnings threshold (currently £5,668**) Entitled Above lower but below trigger for automatic enrolment (currently £9,440**) Non-Eligible Above the trigger for automatic enrolment (currently £9,440**) Eligible *SPA = State Pension Scheme **Tax year 2013/2014 7
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  Communication Inform all workers: • The correct information at the right time • On an individual basis • In writing (email is acceptable) • Of any/all changes and how they changes affect them • Whilst offering no inducement or advice from the employer Achieving successful communication: • Make certain employees feel in control • Clarify what employees will receive from it • Relevant information for each employee group • Presenting information in layman’s terms • Repeating information across different channels • Opportunities for questions and answers • Define roles and responsibilities clearly Monitoring and Managing Records and Data The following need to be monitored: • Opt-outs, opt-ins (on a monthly basis) • Re-assess workforce (on a monthly basis) • Wage increases • Birthdays • Retirees • Contractors • New joiners • Potential Postponements • Employees on probation • Monitor Leavers Auto Enrolment made simple for you. 1 Dukes Road, Troon, KA10 6QR. T 01292 317214 www.mapenrol.com MAP Enrolment Solutions is a trading style of MAP MY Finance ltd It is compulsory that every company enrols and provides a pension scheme. Don’t leave it too late and risk fines. Arrange a consultation today, and we will help you select the correct solution.