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Why was auto enrollment introduced?
The government introduced auto enrolment in 2012 to help more people save for their retirement. Since then around 10 million people have been auto enrolled and are saving for their retirement with their employer’s help.
What are the minimum pension contributions under auto enrolment?
From 6 April 2019, the minimum your employer has to contribute increased to 3% of your salary (within certain limits detailed below), up from 2% previously. At the same time, the minimum total auto-enrolment contribution rose to 8% (that’s the total you and your employer together must put in).
Will auto enrolment pension contributions increase?
The minimum auto enrolment statutory contributions will be increasing in April in line with auto enrolment legislation. By law, minimum pension contributions will soon be increasing. The minimum auto enrolment statutory contributions will be increasing in April in line with auto enrolment legislation.
What are the contribution rates for auto enrolment for 2020 21?
contribution rates for employers and employees, where the minimum for a qualifying pension scheme in 2020/21 is 8% total contributions (including tax relief) on relevant earnings, of which at least 3% is from the employer.
Is there a maximum contribution for auto enrolment?
Is duties start date the same as staging date?
Your automatic enrolment duties start is when you employ your first member of staff, this is called your duties start date. The Pension Regulator will write to you to confirm what this date is. For any business who employed staff before the 1 October 2017 you will have a Staging Date.
What is the staging date on payroll?
The date your employer duties first apply is known as your staging date and it’s based on the number of people in your largest Pay As You Earn (PAYE) scheme on 1 April 2012. All you need is your employer PAYE reference.
Can you backdate pension contributions?
When your client sets up their pension scheme, they should tell the scheme provider that they need to backdate contributions. Your client may wish to check if their provider can help them calculate the amounts they need to repay, and tell them what they need to do to make these payments.