Companies with non-director employees on the payroll

Companies with non-director employees on the payroll

If you have employees (including spouses) on the company payroll, you are affected by the workplace pension enrolment legislation.
Your key contact for the Pensions Regulator should be yourself as Director of your limited company.

You can contact the Pensions Regulator by email, AEsupport@autoenrol.tpr.gov.uk , refer to the correspondence you have received or visit their website.

Multi Directors are treated independently, but unless you each have a contract of employment with your company, your director salaries are outside the scope of auto enrolment but if any of your employees are aged between 22 and their state pension age and earning above £192 per week (£833 per month), you must automatically enrol them into a workplace pension scheme.

Other employees outside the age and salary parameters above have a right to opt in, so you will still need to have a scheme in place. Please see the following link for further information.

Although Sherwin Currid cannot set up these schemes on your behalf, we will endeavour to provide you with all the necessary guidance to ensure you are able to comply with any obligations you may have.

If your spouse is your only employee, you may wish to consider appointing them as a Director. Your company will then fall outside the auto enrolment process. You should still declare the Company is compliant with the regulator via their website. 

Sherwin Currid has looked into sourcing a financial advisor who may be able to assist with setting up an appropriate workplace pension scheme. Unfortunately, pension providers do not appear to be interested in very small schemes which means you will need to put a shell scheme around your company using a master trust arrangement such as: NEST, NOW Pensions or Peoples Pension.

NEST is the scheme set up by the Government with no charges to set up the scheme or for ongoing administration.

NOW Pensions or Peoples Pension may offer more competitive annual management and contribution charges if you will have employees in the scheme.

Although eligible employees can opt out of the scheme you set up, they have to be automatically enrolled in the first instance.


 


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