You must do this on your duties start date.
On your duties start date, you must work out how much each member of staff earns and how old they are. This will identify what you need to do and is known as 'assessing your staff'. You should use this information in order to complete your declaration of compliance.
Staff will fall into one of two categories:
| Gross Earnings | Age 16 - 21 | 22 - SPA* | Age SPA* - 74 |
|---|---|---|---|
| Over £833 a month (Over £192 a week) |
Type 2 | Type 1 | Type 2 |
| £833 a month or less (£192 a week or less) |
Type 2 | Type 2 | Type 2 |
*State Pension Age. If you are unsure what this is use the State Pension Calculator to find out.
Any staff who are:
...must be put into a pension scheme and you must both pay into it.
We have additional information to help you understand your costs. You can also contact your pension provider should you require more information.
If any of your staff fall outside of the above age and earning criteria then you only need to put them into a pension scheme if they ask.
If you've worked out that you don't have staff to put into a pension scheme you still have other tasks to carry out in order to meet your legal duties. If you don't have any staff to put into a pension scheme you will still have to write to them to tell them how automatic enrolment applies to them.
If your member of staff earns £120 a week (£520 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 £120 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.
If you employ seasonal or temporary staff or you have staff whose hours and pay varies each time you pay them, you will still need to assess them to work out if they need to be put into a pension scheme.
Find more information to help you when you're assessing:
You can delay 'assessing' your staff for up to three months. This is known as 'postponement'.
Postponement does not change your duties start date, but simply the day you assess your staff's age and earnings. If you use postponement you must write to your staff to tell them what you are doing. Find out if postponement is right for you.
Having worked out what you need to do for each person you employ, it is now time to put those that you need to into a pension scheme.
You will need to give your pension scheme provider all the information that they need to initially set up your staff in the pension scheme.
You must work out how much you both need to pay into the scheme, and arrange for this to happen. Find out more about making contributions to your pension scheme.
Payroll software may help do this for you. For full details contact your pension scheme provider.
To do list:
< I'm an employer who has to provide a pension Step 3. Write to your staff >
We’ve created a new duties timeline that helps you work out what duties you need to do and by when. Have your duties start date* handy.
View your duties timeline