As an employer, you should be aware that:
- all of your employees meeting the eligibility criteria, who do not already have pension coverage in respect of their employment with you will be auto enrolled.
- you will need to ensure that your payroll software, when updated, can take instructions for enrolment, calculate and pay employee and employer contributions to NAERSA, the National Automatic Enrolment Retirement Savings Authority.
- You will be required to match members contributions up to an eventual maximum of 6% subject to an earnings threshold of €80,000
- If you failed to meet your auto enrolment obligations as an employer, you will be subject to penalties and possibly to prosecution.
NAERSA will operate an online portal for employees to manage employee opt out options suspension of contributions and re-enrolment. It will also operate an online portal for employers to facilitate the payment and monitoring of contributions.
All of this will mean that as an employer you will have minimal administrative work in relation to auto enrolment.
The first three years contributions are set at 1.5%
YOU NOW NEED TO ASSESS THE ADDITIONAL COST OF THE SCHEME TO YOUR BUSINESS and budget accordingly, bearing in mind that the Statutory National Minimum Wage is set to increase by €0.65c per hour for all adult workers, or €14.15.
The portals will be available in early December.
In the meantime- check with your payroll provider or your payroll software provider to ensure you are ready.
The Association will be providing timely information between now and January 1st.
