Workplace Pensions

Important points to consider regarding your workplace pension statutory compliance.

1. Crown Payroll Ltd enclose a full workplace pension guide, with your first payroll and for all your new employee/s, we enclose full workplace pension information, as per compliance required by The Pension Regulator.
2. We enclose our unique workplace pension form with your first payroll.
3. Crown Payroll Ltd have streamlined the set-up process and guarantee it will take less than one minute to complete. Then you need take no further action. We set up your workplace pension scheme. We then handle all workplace pension administration on your behalf. We file your workplace pension contribution reports each pay frequency with NEST pension.
4. We guarantee your workplace pension compliance with The Pension Regulator by completing your Declaration of Compliance.
5. We process all of your ongoing workplace pension compliance and workplace pension administration.
6. If you do not require a workplace pension, as no qualifying or opt-in employees, as a registered HMRC employer, you must still complete, The Pension Regulator Declaration of Compliance. You need take no action. Crown Payroll Ltd do this on your behalf FREE of CHARGE. We believe we are the only company in the UK offering this service. Many other Payroll providers charge upwards of £100 for this service.

We ensure your workplace pension compliance by being in contact with you during the 3 months’ postponement period from employment start date to workplace pension set up. We can set up the workplace pension before the 3 months’ postponement date just complete the workplace pension form included in the pension guide with your instructions.

Automatic Workplace Pension Enrolment is a requirement for every UK HMRC registered employer, to provide the facility of a workplace pension for their employees and automatically enrol them into your workplace pension if they qualify or enrol them if they choose to opt-in.

The employee automatically qualifies

• The employee is aged 22 – retirement age at employment start date.
• The employee Gross salary is more than £833 gross per month, or £192 gross per week.
• Crown Payroll Ltd only process qualifying earnings to calculate contributions for employer and employee, which is the standard way to calculate the legal minimum contributions. Qualifying earns are the GROSS salary minus the current tax year threshold. For example, employee earns £1000 gross per month, threshold for the year is £520 per month = a qualifying salary of £480 your employer contribution is 3% = £14.40 per month. Employee contribution is 5% = employee contributes £19.20 (4%) HMRC contributes 1% as employee workplace pension savings are tax free = 5% in total.

Employment start date

Your workplace pension compliance duties start date.

Within 3 tax months or part thereof of employee start of employment.

Declaration of Compliance

The Pension Regulator requires the status of your workplace pension compliance, regardless of the qualifying status of any employee. They achieve this by the completion of the Declaration of Compliance, which informs them of exactly your workplace pension status.

The Declaration of Compliance must be filed within 5 months of HMRC registration start date. The Pension regulator requires a Re- Declaration every three years and re-enrolment of any current staff that opted out over 12 months before Re-Declaration.
Crown Payroll Ltd fully manage all this on your behalf free of charge.

Crown Payroll Ltd guarantees to complete your Declaration of Compliance with The Pension Regulator free of charge. You need take no action.

The Declaration of Compliance must be re-filed with The Pension Regulator every 3 years, which Crown Payroll Ltd pensions complete on your behalf as a Re-Declaration of Compliance.

Crown Payroll Ltd off-set any workplace pension compliance work for companies who have all non – qualifying employees by charging for Re- Declarations and if required Re-Enrolments every 3 years a workplace pension compliance service price based on number of employees as per our workplace pension price per person advertised prices.

If you choose Crown Payroll Ltd Pensions to set up and administer your NEST workplace pension and The Pension Regulator compliance on your behalf, please you must take no set up action and allow Crown Payroll Ltd pensions to set up on your behalf, under our super delegate association with NEST. If you have set up a pension with NEST or another scheme, you must contact us immediately. We can then discuss the options available to you.

Crown Payroll Ltd pensions must process the minimum contribution compliance amounts as required each tax year by HMRC & The Pension Regulator, should your pension contribution instructions not meet current compliance requirements we will contact you to implement contribution compliance amendments. Please note. If you or your employee/s, wish to contribute a higher percentage of salary or change to a higher fixed monetary amount than the current Automatic Enrolment minimum percentage contributions. You must either e-mail Crown Payroll Ltd with your exact contribution instructions or enter on the workplace pension form.

By law we are unable to give you advice or guidance regarding your choice of pension provider. However, whichever pension provider you choose to use, it should be remembered that the minimum contribution percentages are the same for all Automatic Enrolment workplace pension schemes.

Crown Payroll Ltd only process qualifying earnings to calculate contributions for employer and employee, which is the standard way to calculate the legal minimum contributions.

Crown Payroll Ltd only process a workplace pension scheme for payroll & compliance purposes, if you or your employees require any workplace pension financial advice, please contact a financial advisor.

You must set up a workplace pension scheme, for your qualifying workers to have the opportunity of joining a workplace pension scheme. There are many variable options for your employees.

Your employee qualifies through age & earnings – must be enrolled in a workplace pension scheme.

Your employee/s may wish to opt-out – but must be enrolled into your workplace pension scheme for compliance purposes, then contact Crown Payroll Ltd via e-mail requesting opt-out. Crown Payroll Ltd then process all opt out administration, although it must be remembered that any qualifying employee will be automatically re-enrolled at Re-Declaration time.

Your company employee/s may not qualify but may choose to opt-in and must be enrolled into your workplace pension scheme.

Your company employee/s may not qualify and not wish to opt-in. You still need to assess the worker every payday and file a Declaration of Compliance with The Pension Regulator.

Workplace pension compliance requires an employer to have a workplace pension scheme in place, for your qualifying employees to be able to make any choices they wish, regarding their future workplace pension and the opportunity for non-qualifying employees to opt-in.

All pension providers take contributions from your bank account automatically each pay frequency, by payment mandate & will take the contributions for you and your employee from your bank account only, as it must be remembered that you are deducting the employee contribution at source from their pay and then paying the amount into their workplace pension on their behalf.

Crown Payroll Ltd set up a direct payment mandate for you between your bank and NEST pensions.

Crown Payroll Ltd will require your full bank details on our workplace pension form.

The Pension Regulator must be informed if you are no longer an employer for the purpose of workplace pension, or you will miss the re-declaration deadlines and face large fines. This closing service is included in our workplace pension service to you.

Please note if you set up and administer your own workplace pension scheme, Crown Payroll Ltd still require a workplace pension service subscription to process workplace pensionable payroll and assessment for qualifying or opt-in employees.

If you choose a pension provider other than NEST, then Crown Payroll Ltd can provide payroll inclusive of pension contributions, subject to our pension service subscription, however, you will be responsible for all administration of your chosen workplace pension scheme.

If you use our Crown Payroll Ltd pension platform to complete The Declaration of Compliance yourself, we double check your entries on the Declaration and if required correct, or complete any blank sections. As the pension platform is in our name, any Declaration of Compliance submitted on our platform is subject to our workplace pension advertised pricing.

Workplace Pension Points to Remember

As the employer, you need to enrol all qualifying employee/s into your workplace pension scheme, depending on employee/s salary and age, you either enrol automatically or because your employee/s have opted in.

Do your employee/s qualify?

(Qualification is if 22 to State Retirement age and Salary over Gross £833 monthly or £192 weekly)

If the employee does not qualify by age or earnings, you do not have to automatically enrol them into your workplace pension, however, you must offer them the opportunity to opt-in to your workplace pension scheme.

OPTING-IN If employee/s do not qualify automatically, they may choose OPT-IN

If employee/s earn under the qualifying salary, they are not automatically enrolled into your workplace pension scheme.

However, employee/s have the right at any time to inform you they wish to opt-in and you must enrol them into your workplace pension scheme

The FIRST thing to do as the employer, is check employee/s details are correct, to ensure NEST will send a welcome pack, to your employee/s correct address, with correct personal details.

• These details will be used by NEST to conduct a workplace pension scheme for the enrolled person.
• Once enrolled it is important to keep employee/s details upto date, by informing Crown Payroll Ltd of any changes

Automatic Enrolment into your workplace pension begins at employment start date unless you postpone, by law you are allowed to postpone enrolment start date for any period up to or any part of 3 tax months.

It is prudent to enrol employee/s into the workplace pension scheme from the 3 month postponement date, as it gives the opportunity to assess the suitability of an employee for on- going employment within the company without having to enrol them into the workplace pension before any probationary period has elapsed.

The company uses NEST workplace pension scheme to meet employer duties and help employee/s put money aside for retirement.

NEST is a straightforward pension scheme that can provide employee/s one retirement pot for life.

NEST (National Employment Savings Trust) is government run workplace pension which offers all member employee/s sophisticated saving products that are generally available only in expensive corporate schemes with very large numbers of employee/s.

We send on your behalf to every new employee/s a full explanation of workplace pension and the benefits and contributions involved.

If your employee/s qualify and want to stay in the scheme you do not have to do anything as we handle all contribution reports and full compliance on your behalf

Contributing to your NEST retirement pot

We file your contribution reports with NEST each pay frequency, you will make employer contributions into your employee retirement pot and your employee will pay employee contributions.

If the employee is eligible, they will also get extra money from the government through tax relief. At the moment, basic rate tax relief is 20%. This means the employee will only need to pay 80p in every pound and NEST will claim another 20p from the government. Ensure you have the employee National Insurance number, NEST will not usually be able to claim basic rate tax relief for the employee without the National Insurance number, please make sure your employee has given it to you, to ensure that they receive ant tax relief claim due.

We calculate contributions based on qualifying earnings. This is employee annual earnings that fall between £6,032 and £45,000.

This total includes for instance, salary, overtime and any other salary element.

• Employers pay 3% per cent of NET qualifying earnings every pay frequency.
• Employees pay: 4% of NET qualifying earnings every pay frequency ( Plus 1% from HMRC a total of 5% employee contributions)

Your contributions will be deducted from your qualifying earnings.

This means that from each GROSS SALARY monthly figure, deduct £520 from Monthly and the remaining balance is your qualifying earnings, if weekly pay frequency, deduct £120

• For example, employee earning £1,300.00 gross per month, deduct £520 = £780 qualifying earnings
• Employee contribution at 4 % workplace pension contribution = £31.20 per month
• Employer contribution at 3% workplace pension contribution = £23.40 per month

Workplace pension law sets out minimum contributions for employers and employees.

If employee or you have any questions about contributions or your enrolment, please contact Crown Payroll Ltd for an answer to your query.

Opting out

What must be remembered is that a qualifying employee can only opt out of  the workplace pension once initially enrolled

• Employee is effectively receiving “free money”
• Before any qualifying employee decides to opt out it should be remembered that every time they contribute to their workplace pension.
• HMRC contribute a further 20% contribution total to their workplace pension pot as pension savings are tax free.
• Your as their employer also contributes 3% towards their workplace pension contribution total
• The “free money” doubles the amount going into their workplace pension

This means by being in the employer workplace pension the employee is receiving a further 4% income on qualifying gross earnings.

As a registered HMRC employer you must complete a Declaration of Compliance with The Pension Regulator even if you have no employees to enrol into a Workplace pension and complete a Re-Declaration every three years.

Crown Payroll Ltd complete all your Workplace pension compliance including your Pension Regulator Declarations of compliance, ensuring that at all times you are fully compliant.

Crown Payroll Ltd complete all your Workplace pension compliance including your Pension Regulator Declarations of compliance, ensuring that at all times you are fully compliant.

If you have no employees to enrol into your Workplace pension we complete your Declaration of Compliance Free of Charge