Autoenrolment - running late

Backdating payment

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Hi guys,

Client had a staging date of 1st May. Postponed until 1st August. Declaration date of 2nd October. Has only just setup their pension scheme (new client).

I understand they will need to backdate payments. I assume these will be:

  • From 1st August rather than 1st May.
  • Pensions Regulator says they can backdate only employer contributions and ask the employees if they want to backdate their contributions. There isn't any option for this on the NEST site. Does it sound right?

Thanks

Replies (8)

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RLI
By lionofludesch
22nd Sep 2017 15:58

Not sure this is correct. I've over-written the contributions calculated by NEST - albeit only for rounding differences.

Try unticking the auto-calc box and entering the August contributions by hand.

Alternatively just get the employer to pay the employees' August pensions. It might be cheaper than paying your fee for sorting it out. Can't be much at 1% ........

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Replying to lionofludesch:
By SteveHa
22nd Sep 2017 16:03

It might if it's Google.

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Replying to lionofludesch:
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By Harrison88
22nd Sep 2017 22:50

Will give it a shot thanks. Does the bit about only needing to pay employer contributions (1%) sound right vs both (2%)? Otherwise I'll need to do a deduction for to date 'ee contributions in next, weekly, payroll run...

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Replying to Harrison88:
RLI
By lionofludesch
23rd Sep 2017 10:40

Quote:

Will give it a shot thanks. Does the bit about only needing to pay employer contributions (1%) sound right vs both (2%)?

No. Minimum contribution is 2%.

Everybody states it as 1% for the employer and 1% for the employee but it's not that at all.

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By Matrix
22nd Sep 2017 19:18

Yes the employer will have to bear the employees' contributions, surely only one month has been missed though?

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Replying to Matrix:
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By Harrison88
22nd Sep 2017 22:49

Payroll is weekly.

You mean the employer needs to pay both employer and employee contributions? I took it as meaning only employer contributions needed to be made.

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Replying to Harrison88:
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By Matrix
22nd Sep 2017 22:57

Well you spoke to TPR, not me, but their advisers are not that great so I would not rely on it.

I set up a scheme late and the employer paid both. In any case I do not see a situation when the employee contribution would not be due for the scheme to be compliant.

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Replying to Harrison88:
RLI
By lionofludesch
23rd Sep 2017 10:36

Quote:

Payroll is weekly.

You mean the employer needs to pay both employer and employee contributions? I took it as meaning only employer contributions needed to be made.

On reflection, I believe that both employer and employee contributions need to be paid with the option on the employees part to give the employer contributions he should've deducted.

Minimum total contribution 2%, minimum employer contribution 1%. Employer chose not to take the option to recover the remaining 1% from the employee.

To be fair, it's the employer's fault. He postponed for three months and still didn't complete on time. No sympathy.

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