'All employers must offer a workplace pension scheme by law. You, your employer and the government pay into your pension.' - HMRC

Details on what an employer is required to do by law in relation to pension can be found on the HMRC website here.

Once an employee earns over a certain amount (found here), an employee must be automatically enrolled into a workplace pension scheme. Many councils have 'local government pension schemes' but if you do not, you have the option of enrolling into a government pension scheme such as NEST. 

If you use a payroll software provider (not basic tools), once your employee triggers the auto-enrolment, you will be notified to send the employee a letter with the option to postpone for up to three months and usually the software system has a letter template which can be emailed or printed and posted. 

During this period, the employee can then choose to opt-in or opt-out. 

If the employee chooses to opt-out, there will be instructions on the letter on how they can do this. 

The minimum pension contribution an employee must pay is 3% and the minimum contribution an employee must pay is 5%. 

If you are part of our payroll service, this will be automatically triggered on our system and I will email you the auto-enrolment letter to pass on to your employee. I can then help manage your pension in the following ways:

• Set up a government pension scheme and make deductions. 

• Submit pension data to NEST. 

• Fill out any local government pension scheme data and return it to you each pay run. 

• Make the deductions and then send you an analysis form with details of the deductions to submit yourself, if you prefer. 

• Make your declaration with 'The Pension Regulator' on your behalf. 

As a registered employer, you are obliged to make a declaration with 'The Pension Regulator'. Details of this can be found here. You will need to redeclare your compliance to duties every three years. 

It is also important to know that:

• HMRC Basic Tools 'does not help you work out who to automatically enrol or calculate pension contributions.  You need to make sure you calculate pension contributions before using Basic PAYE Tools to make sure the amounts you enter are correct.  You are liable to fines if you do not meet your obligations.' HMRC

• 'You are legally required to provide a workplace pension for certain staff, which you must also pay into.'  - HMRC.  More details on your obligations can be found using this link.