Employers will be required to automatically enrol all their employees in an occupational pension scheme. This, however, is assuming the employee is aged between 22 and state pensionable age. The employee must also be earning more than a minimum level of money up to a maximum amount. The employer will be required to pay a certain percentage towards the contribution. This wil undoubtedly make turning to a specialist payroll company a more viable option.
The amount being paid in will be based on how much the employee is earning. In total, eight percent of the employee's earnings must be paid in. But at least three percent of this figure should come from the employer and a one percent contribution from the government as tax relief. The employer's contribution can be phased in gradually over a period of three years.
Employers might find this new legislation very daunting. However, payroll outsourcing may be the solution to their problems. At Dataplan Payroll, for example, we have no need to worry about the day to day running of our clients' business. Our sole purpose is to ensure that the pension scheme is implemented efficiently along with the other payroll processing services that we provide for them.