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StuartAnder


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Everyone's Favourite subject im sure :)

 

Do you have to send a letter to employees informing them that because their wages are below the threshold, the company doesn't have to introduce Auto enrolment?

If so, does anyone have a template?

Many Thanks

Stuart



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pictures


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Gosh I don't know.

I had to send letters to everyone (including myself) who was either too young or had wages too low but it offered the option to join the scheme that my company were setting up anyway as there were lots of eligible jobholders.

This was provided by the pension company.

I've got half a ton of auto enrolment paperwork and regulations stuff saved on my computer somewhere but I don't remember seeing anything about this.

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Julie
pictures


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I've had a little look and I reckon your client probably needs to take professional advice on this because from the info I've seen(but I havn't reads the whole lot which is hundreds of pages) non eligible jobholders (those who are too young or earn too little) still have to be given the option to join a scheme. They are what the Pensions regulator calls an "entitled worker".

The non eligible jobholders I've got on the payroll I do have to be re-assessed on the pension company system every payday to check they are still not eligible.

Its different again for directors.



-- Edited by pictures on Wednesday 10th of August 2016 02:56:34 PM

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Julie
pictures


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I've carried on reading. It seems that non eligible jobholders have the right to join an auto enrolment scheme but that entitled workers only have the right to join a pension scheme which doesn't have to be an AE one.

Its a bit of a minefield & one that only IFA professionals can really advise on I'd say.

Here is a link to the Detailed Guidance (part 1)

www.thepensionsregulator.gov.uk/docs/detailed-guidance-1.pdf

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Julie
StuartAnder


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Thanks Julie :) Its only 1 employee and its the clients wife, so I cant see them opting for it. but ill put it out there :)

Thanks Again
Stuart

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pictures


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She's not a director is she as it's different for directors I think.

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Julie
Cheshire


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StuartAnder wrote:

Thanks Julie :) Its only 1 employee and its the clients wife, so I cant see them opting for it. but ill put it out there :)

Thanks Again
Stuart

 Hi Stuart

The Pension scheme needs to be set up and then the offer made to opt, before they can opt out.  I know - silly in such circumstances and costly too!



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 Joanne 

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Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

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Cheshire


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pictures wrote:

I've carried on reading. It seems that non eligible jobholders have the right to join an auto enrolment scheme but that entitled workers only have the right to join a pension scheme which doesn't have to be an AE one.

Its a bit of a minefield & one that only IFA professionals can really advise on I'd say.

Here is a link to the Detailed Guidance (part 1)

www.thepensionsregulator.gov.uk/docs/detailed-guidance-1.pdf

 My understanding is that it has to be 'AE' compliant 



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 Joanne 

Winner of Bookkeeper of the Year 2015, 2016 & 2017 

Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.

You should check out answers with reference to the legal position
Peasie


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StuartAnder wrote:

Everyone's Favourite subject im sure :)

 

Do you have to send a letter to employees informing them that because their wages are below the threshold, the company doesn't have to introduce Auto enrolment?

If so, does anyone have a template?

Many Thanks

Stuart

Maybe your payroll software will have it included.  I know that Payroll Manager has one so it's easy enough to send to all employees.



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