Most employers are now required by law to enrol workers in a workplace pension scheme. This process is known as auto-enrolment. For people employing nannies, it can feel like yet another area to cause confusion and concern – which is why we provide separate auto-enrolment support as an addition to our nanny tax and payroll service.
Workplace pension auto-enrolment support from Taxing Nannies
We can provide a cost-effective, one-stop way for you to get your auto-enrolment ducks in a row and comply with all of the workplace pension legislation.
For a fee (from £80 for initial registration covering the first year’s fees, followed by an annual charge of £75) we enrol our clients into NEST, the Government backed pension provider, and deal with all the necessary compliance issues. These include the Declarations of Compliance and Re-enrolment as required by the Pensions Regulator. We calculate the pension payments required to be made by employee and employer, and upload the data to NEST each pay day.
In any instance, the payroll aspects of auto enrolment – which include calculating the pension contributions, and detailing them on the payslips – will be covered as part of our ongoing nanny tax and payroll service.
Employers are required to enrol all workers who:
- are aged between 22 and the State Pension age
- earn at least £10,000 a year
- work in the UK
You need to auto-enrol from the Duties Start Date, which is the date your employee starts employment (although you do have the option to postponement payment of pension for 3 months from that date.)
Pension payments are payable at the rate of 8% overall, with a minimum contribution of 3% by the employer and 5% by the employee. Payments are due on all gross monthly earnings between £520 and £4,189.
