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Auto-Enrolment, pension contributions since 2012 have been calculated at a rate of 1% employee and 1% employer contribution of the employees qualifying earnings. As from 6 April 2018 these rates will be increasing to 3% employee contribution and 2% employer contribution. 

Year on year the qualifying earnings look to be increasing in line with the national insurance limits. The NIC lower earnings limit set for the tax year 2018/19 will be at an annual amount of £6,032, the upper earnings limit will be £46,350. The Auto-Enrolment trigger remains at £10,000 pa.  We must bear in mind that although an employee must be auto-enrolled into a compliant pension scheme once they earn £10,000 pa (monthly salary of £833.33) the contribution is calculated on earnings above the lower earnings limit and under the upper earnings limit this being £6,032 and £46,350 from 6 April 2018.

From April 2019 the employers pension contribution rate will increase to 3% and the employees rate will rise to 5%. 

We are aware that our clients are very keen to ensure they remain compliant when operating payroll together with Auto Enrolment. Perhaps you would like to enquire about us carrying out a one off payroll review to ensure your payroll software is ready for the new tax year.  As part of the review we will make sure that your payroll legislation is up to date, we will ensure the pension contribution percentages are set at the correct rate and be able to answer any payroll / Auto-Enrolment queries you may have.

 

If you would like to enquire about this service please contact Liz Marker via email payroll@thomaswestcott.co.uk or phone 01392 288555 to arrange a convenient time.