Sage Instant Payroll- Automatic Enrollment Pensions

Sage Instant Payroll Enrollment Pensions

If the pension scheme being support for payroll, pension and software providers

Minimum pension contribution and under automatic enrollment is required to increase over time. It is a key feature of automatic enrollment and it happens to set dates. It should be integrated into their product offerings. The complete information on the page will assist them to make the necessary arrangements.

Automatic enrollment phasing – Changes to automatic enrollment contributions

  • The minimal contributions that the user and their staff pay into their pension scheme are expanding from 2018.
  • TPR (The Pensions Regulator) is approaching employer about the increase in the minimal contributions. The user and their staff must pay into their automatic enrollment pension scheme.

When does the increase take effect?

  • The minimal contributions are outstanding to be developed over two phases. The first development is from 6 April 2018 and the second from 6 April 2019.
  • Its first phase of the increase was initially due to start from October 2017. But these dates were changed by the government to begin from 6 April 2018 and it was changed in April 2015.

Does this apply to me?

  • The employers must pay at least the minimal contributions into the pension scheme. If they are already paying above the increase minimal amounts, they do not need to create any changes or not need to worry.

What are the minimum contribution rates?

By government it is law that the total amount of contribution must be paid into a pension scheme. If the user decides to pay cover the total minimum contribution needed, their employee does not require contributing anything. The minimum contribution from the employer is 2.00 % from 6 April 2018 and from 6 April 2019 the minimum contribution will be increased to 3.00%.

Date

Staff contribution

Employer minimum contribution

Total Minimum Contribution

Currently until 5 April 20181.00%

1.00%

2.00%

6 April 2018 to 5 April 20193.00%3.00%

5.00%

 

6 April 2019 onwards5.00%5.00%

8.00%

What if I am using a pension scheme which requires different minimum contributions?

The customer has an agreement with their pension provider to base the minimal contributions on different pay elements.

What’s next?

If they have Sage instant Payroll or Sage 50 Payroll, they will include the new rates in the payroll year end updates for the 2019/2020 and 2018/2019.

If the customer needs some Sage technical support, they can contact on RemoteAccounting247. We are available for 24*7 for your help. They can make a call on our Sage toll free number  +1-800-961-6588. Our team is highly experienced in this domain. So that you can contact us at any time, for further assistance.

 

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