What do Employers have to contribute to Workplace Pensions?
With Workplace Pensions already upon us, for employers and for us in the world of payroll services, it’s probably worth reminding people that employers must contribute at least 1% of employees’ salaries from their staging date until 30 September 2017. This rises to at least 2% from 1 October 2017 until 30 September 2018, and rises again until at least 3% from 1 October 2018 onwards.
The key phrase there, of course is ‘at least’, and it seems that the number of employers who are considering planning on contributing more than these minimum amounts into workplace pensions has nearly doubled in the last year.
This data comes from a survey by NOW:Pensions who found that “thirty per cent of 400 small and medium-sized businesses surveyed will consider contributing more,” than the statutory minimum, an increase of 17% on a similar survey in 2014.
Why are these companies planning to be more generous?
The main reasons for employers planning to pay more are:
- Helping recruitment and retention of staff (57%),
- encouraging increased contributions from employees (51%),
- A belief that the minimum contribution is too low for what is required for a comfortable retirement (39%).
- Finally, about a quarter (24%) recorded that as they didn’t offer many other benefits they were comfortable spending a little more on workplace pensions.
When it comes to the payroll services required for workplace pensions, we can help
We believe that the key to a successful Workplace Pension is a quality payroll service. After all, if your payroll service is not performing, it can compromise all the hard work you put into planning your Workplace Pension package for your employees.
So, whatever your plans are for the amount you wish to contribute to your employees’ workplace pensions, talk to us about the Payroll Service you need to make sure it all works properly. We’ve been fully compliant with all the payroll requirements for Workplace Pensions since they started and can take all the time and responsibility off your shoulders so you can get on with running your company.
Call us on 0121 422 0550 or Contact Us for a no obligation chat and a free quotation.