Are your clients aware that minimum contribution rates are rising?
Automatic Enrolment(AE) law has clearly stated that minimum contribution rates will rise over time on set dates. The current minimum is 2% and is set to rise on the 6th of April 2018 to 5%.
The increase shouldn’t mean too much work for your clients, however, it is important that they prepare for the increases early and think about how the increase will affect them. It is also a good idea to advise them to check with their current payroll software provider to ensure that they are ready to cater for the increased contribution amounts.
It is also worth noting that there are no legal requirements under automatic enrolment for your clients to advise staff about the increases. However, it would be good practice to inform their employees to reduce the number of employees that decide to leave their pension schemes as a result of the increases.
BrightPay Payroll and Auto Enrolment software will seamlessly handle the increase to contribution amounts, streamlining the process for your clients. If you’d like to see how user-friendly BrightPay is you can download our free 60-day trial or book your place on one of our online demos.
Written by Cailín Reilly | BrightPay Payroll Software.