Trade body provides automatic enrolment reminder for Christmas period

Independent Garage Association urges independents not to forgot their automatic enrolment duties this winter

Trade body provides automatic enrolment reminder for Christmas period
The Independent Garage Association has released information and advice for automatic enrolment. Image: Bigstock.

The Independent Garage Association (IGA) has released information to provide independent garages with further information and reminders about automatic enrolment (AE). 

It is now mandatory for every employer in the UK to enrol their workers into a workplace pension and contribute towards it, under the Pensions Act 2008.

While AE is now business as usual for the majority of employers, in the last quarter alone The Pensions Regulator conducted approximately 25 per cent of all AE enforcement activity they have ever taken.

Contribution increase

From 6 April, 2018 the minimum contributions that both employers and staff must pay into the automatic enrolment pension scheme is being increased to two per cent for employers and three per cent for employees.

The IGA has advised that employers figure out how the change will affect them by checking their payroll services are compatible.

Temporary workers

It is important to note, especially as the Christmas season approaches, temporary staff are not exempt from AE.

Employers still need to assess temporary staff when running payroll and put any eligible employees into a pension scheme.

Employers can also choose to postpone staff members, which means delaying their assessment, it is important to make sure that the correct procedure is followed if deciding to apply a postponement period for any staff member.

Re-enrolment

The Pensions Regulator released a new tool to help employers struggling with re-enrolment.

The re-enrolment tool is easy to use and clearly displays key dates in the process which are specific to the user’s business.

If you are unsure of your responsibilties for automatic enrolment, you can check them with The Pensions Regulator’s duties checking tool, using your PAYE reference number, letter code and employee details.

For further information, please visit The Pensions Regulator’s website or call the IGA member helpline on 0845 305 4230.

For further information about the Independent Garage Association, click “more details” below.

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