What is auto enrolment certification?

What is auto enrolment certification?

Automatic enrolment rules revolve around pension contributions linked to the ‘qualifying earnings’ (QE) band. An employer can certify that a workplace pension scheme meets the standard required, even if it uses a different definition of pensionable pay.

What makes a pension qualifying for auto enrolment?

the pension scheme requires, as a minimum, a total contribution of 8% of the jobholder’s qualifying earnings in the relevant pay reference period. of which the employer’s contribution is at least 3%

Do I have to be auto enrolled into a pension?

However, it is compulsory for eligible staff to be put into a pension to begin with. Your clients must first automatically enrol staff into a scheme before they can opt out of it. Staff cannot tell your clients that they don’t want to be in a pension and ask not to be automatically enrolled in the first place.

Can I use my personal pension for auto enrolment?

As far as automatic enrolment legislation goes, there’s nothing that actually prohibits employers from paying contributions into someone’s personal pension rather than a workplace one.

What is the difference between qualifying earnings and pensionable pay?

Your employer might choose to base contributions on your ‘pensionable pay’, rather than qualifying earnings. Pensionable pay is defined by the rules of the pension scheme. Typically, pensionable pay is basic salary, not including elements of your earnings such as commission, bonuses and overtime.

Is car allowance pensionable UK?

Pay that is not pensionable includes: Travelling or Subsistence Allowances. Car Allowances. Any payment made in consideration of a Loss of Holidays.

What are the minimum pension contributions under auto enrolment?

If you use basic earnings to calculate auto enrolment pension contributions, the minimum contribution to an employee’s pension savings is 9%. Employers must pay at least 4% and the employee the remaining 5%.

Can I have a personal pension and a workplace pension?

Yes, you can absolutely have a workplace and personal pension. In fact, you could use your workplace pension to help top up the state pension, and then use a personal pension for added flexibility when saving for your future.

Do I have to spend my car allowance on a car?

Employees can use the money to either buy their own car or lease a vehicle privately. There’s no set rule as to the amount that your employer can pay you as a company car allowance, but generally the cash equates to what your employer would have paid to lease a company car, as well as the business miles you’ll cover.

Is car allowance part of salary?

Is car allowance part of a salary? Car allowances are paid on top of your salary. It’s a one-time cash sum that you have to use for getting a vehicle to commute to work with. Car allowance is taxed as income tax.

What is a qualifying automatic enrolment pension scheme?

Employers are required to automatically enrol jobholders who are aged at least 22, under State Pension Age and earning more than the earnings trigger (£10,000 in 2014 to 2015) into a qualifying automatic enrolment pension scheme.

What is the difference between auto enrolment and certification?

The standard minimum contribution for auto enrolment is based on qualifying earnings. This can be difficult for employers to administer. Certification allows employers to calculate contributions on an alternative basis and has been designed to cater for employers who have good quality money purchase schemes where either:

When can employers certify their pension schemes?

Employers may only certify where they have evidence that it is reasonable to believe that their money purchase occupational or personal pension scheme meets either the relevant quality requirement or one set of the alternative quality requirement.

What are the new automatic enrolment regulations?

The automatic enrolment regulations allow employers to defer assessment and effectively create a window of up to three months before they assess, automatically enrol and make deductions for an eligible jobholder. You will still need to be automatic enrolment ready, and your QWPS must be in place on your staging date should anyone wish to opt-in.

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