Assessing groups of workers – Transcript

Automatic enrolment detailed guidance for employers no. 3 Appendix C

This is a transcript of the flowchart intended as supporting material for Detailed guidance no. 3 – Assessing the workforce.

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Please note:

* This amount is for the 2023 to 2024 tax year. These figures are reviewed annually by the Department for Work and Pensions (DWP). Where there is a change, the figures for the next tax year after they have been announced by the DWP, as well as the historic and current amounts can be found on our website at: www.tpr.gov.uk/earnings-thresholds.

** Prior to 1 April 2015 an employer would have needed to distinguish between a noneligible jobholder and entitled worker in this group as there were separate information requirements for each. Since 1 April 2015 there is no longer this requirement but an employer who staged before 1 April 2015 can continue to make this distinction as they can choose to continue giving information about only the right of a jobholder to opt in or of an entitled worker to join. More information can be found in Detailed guidance no. 10 – Information to workers.

1. Identify your workers

Now go to 2

2. Exclude any workers under 16 and over 74

Now go to 3

3. Exclude any workers who do not work, or ordinarily work, in the UK under their contract

Now go to 4

4. Assess earnings

(1) Identify pay reference period

(2) Assess qualifying earnings payable in that pay reference period

(3) Compare against the earnings trigger for automatic enrolment (£10,000) appropriate to the pay reference period

£10,000 (pro rata)** or below – Go to 6

More than £10,000 (pro rata)** – Go to 5

5. Potential Eligible jobholders

Apply age criteria. Identify workers aged over 22 but under state pension age.

16–21 or state pension age to 74 - Go to 6

At least 22 but under state pension age - Eligible jobholders

6. Does not need to be automatically enrolled but as a jobholder they can choose to opt in to an automatic enrolment scheme or as an entitled worker they can choose to join a pension scheme. An employer will need to separately identify a jobholder or an entitled worker within this age bracket when:

they are given an opt in of joining notice
immediate re-enrolment is triggered
if the worker is an active member of a scheme that is not qualifying, or
if they choose to give separate information about either opt in or joining**

Now go to 7

7. To distinguish between jobholder and entitled worker on these occasions:

Identify pay reference period
Assess qualifying earnings payable in that pay reference period
Compare against the lower level of qualifying earnings (£6,240) appropriate to the pay reference period

£6,240 (pro rata)* or below – Entitled worker

More than £6,240 (pro rata)* – Non-eligible jobholder