Auto-enrolment was introduced to reform the way we provide for our retirement because not enough of us are saving into pensions and we’re living much longer. The annual cost of state benefits to pensioners is projected to rise to a massive £190 billion by 2036.

Our experienced payroll team looks after hundreds of auto-enrolment schemes for clients, so why not pass yours over to us too? We can do as much or as little as you need us to – whether it’s setting up the scheme for you or managing it each month on an ongoing basis.

What you have to do

As an employer, you need to:

• select a suitable pension scheme, register it with the Pension Regulator and enrol your workers
• complete the scheme’s returns
• process the scheme payments, refunds and deductions from workers’ pay
• register and re-register your workforce throughout the year.

What you can’t do

Now here’s the ‘can’t do’ list, for which there will be stiff penalties imposed on you if you do.

You’re not allowed to:

• offer investment advice to your workers
• discourage them from joining the scheme, or give opt-out forms to them
• use ‘prohibitive recruitment’ conduct – in other words, favour applicants who will opt-out.

Your workforce and contribution levels

Your responsibilities vary depending on a few factors:

• the type of workers you have
• their age
• their earnings.

In short, your workforce falls into three categories and your obligations will vary from category to category. The contribution levels are pretty substantial – as an employer, you’ll be contributing 3-4% of salary depending on the options chosen, and your employee will be paying in 4-5%.

If an employee opts out of these payments, then your own employer contribution stops too. But please remember that they must do this on their own and without your help.