Pension Auto Enrolment Services
PayrollAbililty helps you with ensuring your employees are fully enrolled on a complaint pension scheme.
Pension Auto Enrolment Support
What Is Pension Auto Enrolment?
When employees fulfil 3 criteria, an employer must provide a pension scheme.
The criteria are:
- That the employee is 22 or over.
- That they are under state retirement age
- That they earn more than £833.00 per month or £192.00 per week (£10,000.00 per year)
The employee must contribute a minimum of 5% of their earnings over £520.00 per month or £120.00 per week. The employer is required to contribute a minimum of 3% of the employees earnings over the same thresholds.
Younger employees or those earning less than £10,000.00 per year can ‘opt in’, but the employer is not required to contribute to the pension scheme.
Can I Opt Out Of A Pension Auto Enrolment Scheme?
The employer cannot opt out of Auto Enrolment.
The employee can choose to opt out of the pension scheme after they have been enroled. Opting out requires the employee to follow the pension providers process for opting out, which can be as simple as a phone call or filling in a form online. In the first month of pension contributions, the employee can opt out and receive a refund of those contributions. If the employee opts out after the first month, the earlier contributions will not be refunded and will stay invested in the pension scheme.
How Is Pension Auto Enrolment Calculated?
| Employee’s gross pay | £1,666.67 |
| Less £520.00 (earnings excluded from pension contributions) | £1,146.67 |
| Employees 5% contribution less 20% tax relief | £45.86 |
| Employers 3% contribution | £34.41 |
| Total pension contribution | £80.27 |
If you are looking for payroll services for carers, why not outsource it with PayrollAbility. Get in touch with our team today to discuss how we can help your business will all things payroll, tax and pensions.
Call us today on 01273 56 92 27, or complete our contact form and our team will be in touch with you as quickly as possible.
You can find out more about our process on our contact page, or read more about how our services can help you online.
We look forward to hearing from you!
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Providing Payroll Outsourcing Services across the UK, including Birmingham, London, Shrewsbury, Reading, Cambridge, Oxford, Norwich, Stafford, Nottingham, Manchester, Brighton, Crawley, Portsmouth, Worthing, Eastbourne, Hastings, Lancaster, Durham, Carlisle, York & more.
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Frequently Asked Questions About Our Payroll Services
What are the costs of our payroll services?
Our Fixed Fee, payroll service for small businesses starts at £34.11 per month which includes pension processing*.
Do you handle pension auto-enrolment?
Yes. Our payroll services cover the setup and management of pension auto-enrolment as needed, ensuring all contributions and compliance remain accurate at all times.
Are your payroll services up to date with HMRC Compliance?
Yes. We always make sure that our services stay fully HMRC compliant, meaning your business stays fully compliant too.
Do you work with business of all sizes across the UK?
Yes, we work with small businesses, new startups, and larger firms across the UK.
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