It is vital that you prepare in advance for Auto Enrolment, the more time you put aside to prepare, the simpler the transition will be.
The new law requires every employer to automatically enrol their workers into a workplace pensions scheme if they:
- are aged between 22 and State Pension age;
- earn more than £10,000 a year; and
- work in the UK
Understanding your staging date is essential and it depends on the size of your largest PAYE scheme as of April 2012. There are many online tools to help determine your staging date and you will need your PAYE reference and the size of your PAYE scheme.
In summary, these are the staging dates that may relate to you:
|PAYE Scheme Size||Staging Date|
|54 – 57||1st March 2015|
|50 – 53||1st April 2015|
|40 – 49||1st August 2015|
|30 – 39||1st October 2015|
If you have fewer than 30 staff on your PAYE Scheme, then your staging date can be between 1st June 2015 to 1st April 2017; it will depend on the characters of your employees PAYE Scheme reference.
Please note if you do not have a PAYE scheme, this doesn’t mean your firm doesn’t have to go through auto enrolment; your staging is 1st April 2017.
Seeking professional help from an Independent Financial Adviser can help smooth out the Auto Enrolment process