Minimum Contributions Increase On 6th April

Employer Duties Regarding Workplace Pensions in the New Tax Year

By law, the total minimum contributions you must pay into your staff’s workplace pension schemes increase on 6 April 2019.

You do need to be ready for this increase, to make sure you are paying the correct amounts into your staff’s schemes.

Are You Ready?

From 6 April, the total minimum contribution including employer and employee payments must be no less than 8% of qualifying earnings.

Employers must pay a minimum of 3%, with employees making up the rest of the 8%.

You can choose to pay more than their 3% minimum contribution if you wish. If you do, employees won’t need to pay in as much to meet the total minimum contribution of 8% of qualifying earnings.

Date effective Total minimum contribution Employer minimum contribution Staff contribute the remainder

Current rates

5% 2%

Up to 3%

6 April 2019 8% 3% Up to 5%

Next steps

– It should be simple for the new rates to be applied, particularly if you use our   payroll service as our payroll software service providers have made sure their systems are ready

– We recommend that employers write to their staff to let them know about the increase in contributions – letter templates are available from The Pensions Regulator website.

If you are unsure call us on 0161 703 8353 and ask for Christine McCarthy.

If you would like us to do your payroll for you please get in touch with Christine McCarthy on: christine.mccarthy@jeffreyahuddart.co.uk

If you would like to write to us with your questions and any concerns drop us an email on: hello@jeffreyahuddart.co.uk

 

 

Tom Bathgate MBA