Government reviews automatic enrolment triggers
The government will review the current link between the auto enrolment trigger and the income tax threshold.
The current threshold stands at £10,000 with this due to increase to £10,500 from next year.
However, the Department for Work and Pensions consultation published today has identified a further three alternatives for 2015/16.
The options under consideration are:
- Increasing the trigger to £10,500, in line with the income tax threshold (the current practice)
- Freezing the earnings trigger at the current level of £10,000
- Raising the trigger by CPI or earnings indexation
- Using the Pensions Commission benchmark replacement rate to determine the trigger
Auto enrolment was introduced in 2012, with the largest companies staging first. As more and more companies at the lower end of the employee scale begin enrolling their workforce, businesses will be watching this review closely. The impact of these changes will affect the number of employees enrolling and possibly the choice of solution they are considering.
With the huge complexities involved in auto enrolment, preparing your business early is essential as well as enjoying a solution that has the flexibility to keep up to date with any changes that are introduced once you’ve staged.
IRIS has now helped over 1500 companies to assess over 400,000 employees using the IRIS AE Suite™. This complete solution makes auto enrolment easy by assessing eligible employees and sending the right communications at the right time whilst linking your P60s and payslip distribution as well!
To learn more about IRIS, auto enrolment and the IRIS AE Suite™ click here