The UK Pension Auto Enrolment System in Essex
In 2008 in the United Kingdom, the Pensions Act of 2008 was passed, requiring all employers, no matter what size, to participate in the funding of employee’s retirement. It is based upon a pension auto enrolment system designed to help employees accumulate funds for their retirement.
It does not matter if an employer has thousands of employees or just one, or if the employer is a pet shop, a hairdresser, a solicitor, or an retail store, all must become a part of the scheme.
Minimum contributions must be at least 2% of wages of which at least 1% has to be from employer contributions. Of course an employer can contribute more if he or she wishes, but that is nice for employees, as it gives them some extra help in this regard.
The legislation was put into effect because of the fact that people are living much longer when they get into their retirement years, and there was a general complacency about setting aside funds for the inevitable time when we have to quit working and fend for ourselves financially.
Each employer was given a staging date, beginning with April 1, 2012, for existing employers, and to be determined with each new employer who goes into business after that date.
There are certain duties which the employer must maintain in order to remain compliant, including communicating in writing to the employees just what the plan is all about, and what the level of employer contributions are going to be.
In addition, employers will have to keep track of the names of the participating employees, their contributions, as well as the employer contributions and the dates when contributions were made. The sole purpose for the record keeping is simply to track who did what when in order to avoid any misunderstanding or problems in the future.
It is a common human condition to put off until later some things that are far off, and that don’t resonate in the present scheme of things. That is exactly how many people feel about saving for their retirement. It is just so far down the road, that it can always be taken care of later, until later comes and there is still nothing in the till.
The response from the public about this pension auto enrolment system has been very favourable, and especially so from employees as part of the funding has to come from the employer, it is free money for them.
If an employer does not comply, there are penalties and fines, and a court date involvement if the non-compliance becomes serious enough. However, it is the goal of the regulators to provide enough assistance to help an employer through the bureaucracy in order to pave the way through getting things set up.
There is a very thorough and well thought out set of steps and directions available on the government website that pertains to this issue, so if an employer has any questions at all, there are numerous examples that can be found there to help an employer through the process.
A good bookkeeping service will help you save money. This is true if you own a business or if you need to adopt better bookkeeping habits for your household budget. Here are a few bookkeeping tips to help you save money and improve your financial situation.
Plan all your expenses in advance. You should never purchase an expensive item or make a major investment before planning it. Go over your finances to see if you can afford the expense and make plans to put money aside if you cannot afford the expense right away.
Keep track of all your expenses. If you ask a professional for bookkeeping tips, they will tell you to find a way of easily tracking your expenses. You could get in the habit of keeping your receipts or use online banking to see how much you are spending. Keeping track of all your expenses will make filing for taxes a lot easier since all your deductions will already be recorded.
Look for ways to reduce your expenses. You should go over your weekly expenses and look for things you did not really need. Small expenses can quickly add up and can easily be eliminated. For instance, you can save on your household budget by avoiding eating out and save on your business budget by ordering your supplies in bulk.
Put as much money aside as possible. You should open a savings account and put money that is leftover at the end of the month in it. If you own a business, putting money aside will give you the possibility of investing in marketing or better products.
These bookkeepingbookkeepingbookkeeping tips will help you save money and get organized. You should set aside a few hours at the end of each week to go over your expenses and bills so you do not get behind on your bookkeeping.