Changes will Impact Payroll.

Workplace Pension Reform overview. Changes which will impact Payroll.
With people living longer, resulting in extended periods of retirement, changes are afoot whereby from 2012 Employers will be required to provide a 'qualifying' pension scheme and automatically enrol 'eligible jobholders' as well as make a minimum employer contribution towards it. Employers will be required to provide of a ‘qualifying pension scheme’ for all employees.

They must also register with The Pensions Regulator and provide details of the ‘qualifying pension scheme’ and number of people that have been automatically enrolled. Plus automatically enrol all ‘eligible jobholders’ into the scheme (employee has a small defined time window to opt out, this is believed to be 3 months).

Employers must contribute at least 3% of the workers earnings (Defined contribution schemes will be phased in at 1%, 2% and 3%).

Oct 2012 to Sept 2016 total contribution will be 2% with a minimum of 1% coming from the employer

Oct 2016 to Sept 2017 total contribution will be 5% with a minimum of 2% coming from the employer

Oct 2017 total contribution will be 8% with a minimum contribution of 3% coming from the employer.

Workplace Pension Reform Information
• Pension Regulator
http://www.thepensionsregulator.gov.uk/pensions-reform.aspx
• Department for Work and Pensions
http://www.dwp.gov.uk/policy/pensions-reform/workplace-pension-reforms/
• NEST (National Employment Savings Trust)
http://www.nestpensions.org.uk/
• Automatic enrolment into pensions at work 2012
http://www.direct.gov.uk/en/Pensionsandretirementplanning/DG_183783
• Staging Dates
http://www.dwp.gov.uk/docs/staging-dates-by-employer.pdf
PAYE Reform
• HMRC Improving the Operation of PAYE
http://www.hmrc.gov.uk/news/improve-paye.htm