Employer paying pension contributions

[bigtime]

I only have one member of staff that I pay 16 hours a week minimum wage. She’s worked for me about one year and when she started she told me verbally that she didn’t want to join a pension scheme. Do I have to pay into or set up a pension for her and if not do I/her need to fill in any paperwork?

[Ham_and_Jam]

If they earn more than £192 per week or £833 per month, you will have to autoenrol them into a works based pension scheme whether they want to or not.

They can immediately opt out and their payments are returned (once they receive confirmation of enrolment), but you cannot avoid putting them in.

You will also need to supply them with all the regulatory paperwork informing them of the scheme and their rights.

Its a bit of a ball ache setting it up initially, but is fairly straightforward once you’ve done it a couple of times.

Edited to add links. All the info you will need-

https://www.thepensionsregulator.gov.uk/en/employe...

We use Nest for our pension service-

https://www.nestpensions.org.uk/schemeweb/nest/emp...

Edited by Ham_and_Jam on Monday 20th March 20:50

[bigtime]

Many thanks for this. So based on this we don’t need to do anything as even when minimum wage goes up in April she’ll only be getting £166.40 a week.

[Ham_and_Jam]

bigtime said:

Many thanks for this. So based on this we don’t need to do anything as even when minimum wage goes up in April she’ll only be getting £166.40 a week.

You should still be giving the employee basic info on pension auto enrolment, and show that they have been assessed and that they don’t meet automatic enrolment if that is still the case.

They will be classed as an non elegible job holder earning between £120-£192 per week and can choose to opt in if they so wish. Albeit your employee doesn’t sound like they will.

You will also still have to complete a declaration of compliance with The Pension Regulator even though you don’t have any enrolled employees.

Have a good read on the the pension regulator website link I put in my first post and it give a comprehensive list of your duties as an employer and guides you through them.

With one employee who isn’t automatically elegible it isn’t as onerous as it might first seem

Edited by Ham_and_Jam on Monday 20th March 22:26

Edited by Ham_and_Jam on Tuesday 21st March 09:41