Adviser  >  Corporate  >  Automatic Enrolment  >  Auto enrolment frequently asked questions

Auto enrolment frequently asked questions

Your questions answered.

Employer duties

Q: Are there any exclusions to the employer duties?

Q: If an employer uses NEST, are they exempt?

Q: Do the employer duties apply to employers who already have a pension scheme?

Q. Can an employer have an auto enrolment scheme where the total contribution rate will be above the eventual minimum contribution required for schemes and well above the interim phased minimum contributions?

Q. If an employee receives a basic salary plus a discretionary bonus, is only the basic salary used when calculating the employer and employee contributions? How would the bonus be treated in this example? Would a contribution have to be made from it?

Q. If an employer is in administration, do the auto enrolment employer duties still apply?

Workers

Q: Who is treated as the employer for agency staff?

Q: What happens if someone works for more than one employer?

Q: How do the employer duties apply to hourly paid/zero-hour contract/temporary/seasonal/agency workers on short term contracts who are re-employed?

Q: How are hourly paid/zero-hour contract/temporary/seasonal/agency workers assessed for auto enrolment?

Q: Josh has his own limited liability company. He's the sole director and employee. Does he have to comply with the employer duties? Would this change if he employed someone else?

Postponement

Q: If an employer uses postponement, how does that affect hourly paid/zero-hour contract/temporary/seasonal/agency workers on short term contracts?

Q. Why would an employer use postponement?

Different types of employer

Q: Does a Limited Liability Partnership (LLP) have to comply with the auto enrolment requirements?

Q. If a company/organisation has a complex structure, for example, one with numerous PAYE schemes and/or subsidiary companies who they part-owned, what will the staging date be for all the companies within that company/organisation?

Earnings definitions

Q. What constitutes 'Qualifying earnings'?

Q. What constitutes basic pay

Salary exchange

Q: Can salary exchange be used to meet the minimum contributions for an auto enrolment pension scheme?

Q: How do I check if the minimum contribution levels have been met when salary exchange is being used for an auto enrolment scheme?

Opting out

Q: Can a worker opt out after the end of the opt out period?

Stakeholder pensions and auto enrolment

Q. How does the introduction of auto enrolment affect stakeholder pensions?

Our proposition

Q: What solution do you offer for auto enrolment?

Q: Will you link to NEST?

Q. When will Scottish Life be able to run an auto enrolment scheme?

Last updated April 2014 37W0946/5

For professional advisers only

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