Find out what you’ll need to do for automatic enrolment if you employ staff for the first time after 1 October 2017.
Under the Pensions Act 2008, every employer in the UK must put certain staff into a workplace pension and contribute towards it. This is called 'automatic enrolment'.
The Pensions Regulator is responsible for ensuring that all employers comply with workplace pension law. It’s important that you understand what you’ll need to do and prepare early.
Whether you're a hairdresser, an architect or employ a personal care assistant, once you employ at least one person you are an employer and you'll have certain legal duties.
If you are employing staff for the first time after 1 October 2017, your legal duties for automatic enrolment begin on the day your first member of staff starts work. You should start preparing early for this to work out what you’ll need to do.
If you’ve employed someone since 2 April 2017 or you’re going to employ someone before 30 September 2017, find out when your duties will start.
If you already employ staff and they were employed by you before 2 April 2017 you should use our duties checker to find out what you need to do for automatic enrolment.
On the date your duties start you must assess your staff to see if they meet the age and earnings criteria to be put into a pension scheme for automatic enrolment. Any staff who are...
…must be put into a pension scheme and you must both pay into it. What you need to do will depend on whether you have anyone who needs to be put into a pension scheme or not.
If your member of staff earns £113 a week (£490 a month) or below, HMRC may not require you to set up a PAYE scheme. However, you do still have certain automatic enrolment duties:
When you start paying a member of staff more than £113 per week, you must set up a PAYE scheme with HMRC. You must also assess your member of staff to work out if they need to be put into a pension scheme that you also pay into. After you set up your PAYE scheme, we'll write to you and ask you to complete a declaration of compliance, which is where you tell us how you've met your duties, by a specific date.
Whether you had staff to put into a pension scheme or not, all employers have ongoing duties for automatic enrolment.
Each time you pay your staff (including new starters), you must monitor their age and earnings to see if they need to be put into a pension scheme and how much you need to pay in. You will also need to manage requests to join or leave your scheme. Find out more about your ongoing duties.
You may need to think about one-off costs to set up automatic enrolment, as well as the ongoing cost of paying money into the scheme and managing the process. Read more about understanding your costs.
The Pensions Regulator will give you guidance and tools to help you meet your duties. We also contact employers to remind them about their duties and when to carry out tasks.
You may also wish to speak with your business adviser, for example your accountant, to see what support they can give you.