What does it mean?
Even if an employer has only one employee (jobholder, worker) the employer is now responsible for providing a Work Place Pension. The reforms place a legal duty on the business operator/owner to automatically enroll their employees into a qualifying pension scheme. The employer and the employee in many cases, will contribute into the scheme.
Work based pension schemes will apply to eligible jobholders, workers who earn above the minimum earnings threshold (earn at least £10,000 per year), are aged between 22 and the State Pension age and work in England or Wales.
A jobholder or worker is to include agency workers and some fixed term and part time contracted workers. Anyone who is entitled to the minimum wage is classed as a worker.
A number of qualifying schemes are available, check the government website for more information (https://www.gov.uk/workplace-pensions-employers)
This is a real benefit to employees, not only for future security, but it helps them to stay in the job that they have just started for longer than perhaps they ordinarily might have done. Knowing that the business they are working for is saving for their future helps piece of mind in an ever restless and insecure job market.
For extra support on this, you could approach an accountant for advice if you cannot find what you are looking for on the government website. Our recommended accountant for Cambridge is UHY WKH Partnership Chartered Accountants
