Pensions insight
Staging with a tax period monthly PRP
Staging with a calendar based monthly PRP
Pay reference period – This runs from 6th day of current month to 5th day of following month. Staging date – 1 November 2016, which falls in PRP 6 October to 5 November – October’s payroll. Total qualifying earnings payable in the PRP – £1,000 – As the worker meets the criteria to be an eligible job holder they need to be automatically enrolled (from 1 November) or postponement used. Postponement – The employer chooses to postpone the worker until start of next PRP (6 November) in order to avoid a pro rata contribution. The employer needs to write to the worker (within six weeks and one day i.e. by 13 December 2016) to inform them that they have been postponed and have the right to opt in/join a pension scheme. The worker is reassessed as at the end of postponement (6 November) which falls in PRP 6 November to 5 October – November’s payroll – and as they still meet the criteria are automatically enrolled. Contributions are calculated and deducted from the worker’s November salary. Writing to staff – The employer has six weeks from the enrolment date to write to the worker giving details of their enrolment and their right to opt out. The deadline for this letter is 17 December 2016. Note: The postponement letter and the enrolment letter could be combined into one letter (providing it is given within six weeks and a day of the start of postponement, in this case 13 December 2016). Sending details to pension scheme – The employer needs to create and send member and contribution data to the chosen pension provider by the date agreed between the employer and pension provider. This focused course represents the single best opportunity to be briefed and updated on changes affecting payroll. One day duration Payroll and HR legislation update Training course
Pay reference period – This runs from first day to last day of each month. Staging date – 1 November 2016, which falls in the PRP 1 to 30 November – November’s payroll. T otal qualifying earnings payable in the PRP: £1.000 – As the worker meets the criteria to be an eligible job holder they need to be automatically enrolled (from 1 November) or postponement used. Postponement – The employer chooses to not postpone the worker as they are enrolled from the beginning of a PRP. Contributions are calculated and deducted from the worker’s November salary
Writing to staff – The employer has six weeks from the enrolment date to write to the worker giving details of their enrolment and their right to opt out. The deadline for this letter is 12 December 2016.
Sending details to pension scheme – The employer needs to create and send member and contribution data to the chosen pension provider by the date agreed between the employer and pension provider.
Counts towards CPD
This informative one day course covers: l Income tax and National Insurance l Real time information l Statutory payments and leave l Expenses and benefits l Pensions reform l Changes to employment rights l Plus much more
For full details or to book your place, please visit cipp.org.uk , email training@cipp.org.uk or call 0121 712 1063 .
cipp.org.uk
43
Issue 25 | November 2016
| Professional in Payroll, Pensions and Reward |
Made with FlippingBook flipbook maker