The Pensions Regulator and the Department for Work and Pensions have sent employers the clear message, “Don’t ignore the Workplace Pension”. If you don’t remember the adverts with the big, colourful monster, you can still watch them on YouTube. Last week, we witnessed the first criminal convictions for deliberately disregarding this message.
Universal Credit is a new payment that replaces 6 benefits, including Working Tax Credit and Child Tax Credit. It has been under the spotlight recently, with MPs pointing out some of its problems and calling for a delay in the planned roll-out. Universal Credit is designed to reduce automatically if an employee’s income increases and, for this reason, its success is dependent on employers reporting their payroll information via Real Time Information.
I was recently asked what advice I’d give somebody who is starting a new business and hiring his or her first employee. As you’d probably expect from someone whose business is payroll software, my answer was about the importance of organising your payroll.
New businesses that make their first payments to employees today will be allocated an automatic enrolment staging date of 1st February 2018. This is the date when they must assess their workers for enrolment into a pension, unless they are operating postponement.