Pensions auto-enrolment

Quote  The vast majority of hairdressers and barbers are completely unprepared for the arrival of pensions auto-enrolment within the industry in the next two to three years, an NHF survey has warned.

What is auto-enrolment?

  • Auto-enrolment is the change to pension provision that means employers have a statutory duty automatically to enrol eligible workers into a work-based pension and make an employer contribution towards it.
  • Eligible workers are those aged over 22 and under state pension age, who earn more than £9,940 per year and ordinarily work in the UK. Employers have a duty to assess all their workers for eligibility.
  • An employer must enrol and pay minimum contributions for any workers aged 16-74 who earn more than £5,668 annually and ask to be enrolled.
  • Any workers aged 16-74 who earn less than £5,668 and who ask to be enrolled must be so, but there is no requirement to pay contributions for them.

The vast majority of hairdressers and barbers are completely unprepared for the arrival of pensions auto-enrolment within the industry in the next two to three years, an NHF survey has warned.

NHF members are being urged to start planning now for one of the biggest employment changes to hit the industry in a generation.

The Federation is holding a series of events on pensions in 2016 around the country to explain to members what auto-enrolment is and what it will mean for salons.

The NHF have launched an NHF pension for members specifically to help salons meet their legal responsibilities under the new regime. For more information vist the NHF Pension Website.

The Pensions Regulator published “FAQs” for small businesses on how to prepare for the arrival of auto-enrolment. The Pensions Regulator’s FAQs can be found on its website, www.thepensionsregulator.gov.uk as well as on the members' fact sheet section of the NHF’s website.

Under auto-enrolment, employers of all sizes have a new statutory duty automatically to enrol eligible workers into a work-based pension and make an employer contribution towards it.

Employers that fail to do so can risk being fined as much as £50,000.

Find out all about auto-enrolment!

The NHF is holding a series of events for members and non-members in 2016 on pension schemes and auto-enrolment. It will cover the following topics:

  • What your responsibilities are as an employer
  • How to find out about your staging date
  • Which of your staff you will have to enrol
  • What it will cost
  • What preparations you need to make, for example selecting a pension scheme, checking your software is compatible, monitoring the ages and earnings of staff and communicating with staff
  • What could happen if you don’t meet your responsibilities
  • Options for pension schemes, their advantages and disadvantages

Anyone interested in attending should visit www.nhf/events, call the membership team on 01234 831965 or email enquiries@nhf.info 

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