Hi, I understand I have to pay employers NI (even though I was not told this) but why do I pay Employers pension basically I`m paying £96.02 a week before I pay my tax and NI this is daylight robbery
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Originally posted by deldez View PostHi, I understand I have to pay employers NI (even though I was not told this) but why do I pay Employers pension basically I`m paying £96.02 a week before I pay my tax and NI this is daylight robbery
Are you sure it's definitely a pension payment?
Also, if you are paying it into a pension, it's not daylight robbery, you're paying into a pension, it's still your money - you just don't have access to it as it's in your pension.…Maybe we ain’t that young anymore -
Pension Payments
I understood pension payments are mandatory now. Every single employer, including contractors employed through umbrella companies, need to enrol their workers into a qualifying workplace pension scheme. The amount is variable but I know there is a minimum % amount. Speak to your Umbrella who will clarify this.Comment
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Originally posted by WTFH View PostHi Deldez, who is your umbrella?
Are you sure it's definitely a pension payment?
Also, if you are paying it into a pension, it's not daylight robbery, you're paying into a pension, it's still your money - you just don't have access to it as it's in your pension.
How long have you been with the umbrella? Most use postponement to try and avoid putting new people into the scheme until it's absolutely necessary.Comment
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Originally posted by deldez View Postbut why do I pay Employers pension basically I`m paying £96.02 a week
https://www.nowpensions.com/help-cen...ribution-rates
The auto enrollment minimum is currently 5% of qualifying earnings of which at least 2% must be paid by the employer. In April 2019 this rises again to of 8% qualifying earnings of which at least 3% must be paid by the employer.Comment
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We defer all of our contractors for the first 3 months and then we must auto enrol them into our group pension scheme. As per the Employers NI the Employers Pension is deemed to be payable as an employment cost from the contract rate, for us this is a 3% and 3% split between the Employers and Employees, however the Employers contribution will only be auto enrolment, any additional contributions will be deemed to come from the Employee.Comment
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AE + pension
Originally posted by lucycontractorumbrella View PostWe defer all of our contractors for the first 3 months and then we must auto enrol them into our group pension scheme. As per the Employers NI the Employers Pension is deemed to be payable as an employment cost from the contract rate, for us this is a 3% and 3% split between the Employers and Employees, however the Employers contribution will only be auto enrolment, any additional contributions will be deemed to come from the Employee.
Do many of your contractors so, opt out - so they make thier own Co discertionary SIPP & if not already persanally contributing to their sipp monthly
its the enrol + then opt out which is of interest please, and the payroll implications
thksComment
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Originally posted by kiwilondon99 View Post@lucy So 3 mths is a standard - max deferral time to deal with setup. After which you must [ agreed] enrol under AE- but 'empoyee'/contractor can then opt out, and no AE deductions ERs or EEs would be made. Correct ?
Do many of your contractors so, opt out - so they make thier own Co discertionary SIPP & if not already persanally contributing to their sipp monthly
its the enrol + then opt out which is of interest please, and the payroll implications
thks'CUK forum personality of 2011 - Winner - Yes really!!!!Comment
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Originally posted by kiwilondon99 View Post@lucy So 3 mths is a standard - max deferral time to deal with setup. After which you must [ agreed] enrol under AE- but 'empoyee'/contractor can then opt out, and no AE deductions ERs or EEs would be made. Correct ?
Do many of your contractors so, opt out - so they make thier own Co discertionary SIPP & if not already persanally contributing to their sipp monthly
its the enrol + then opt out which is of interest please, and the payroll implications
thks
And then what NLUK said - if they have a separate non AE pension you can stick what you want in each month it becomes very tax/nic efficient.Comment
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Originally posted by kiwilondon99 View Post@lucy So 3 mths is a standard - max deferral time to deal with setup. After which you must [ agreed] enrol under AE- but 'empoyee'/contractor can then opt out, and no AE deductions ERs or EEs would be made. Correct ?
Do many of your contractors so, opt out - so they make thier own Co discertionary SIPP & if not already persanally contributing to their sipp monthly
its the enrol + then opt out which is of interest please, and the payroll implications
thks
We do have a great pension scheme, and the majority choose to stay and contribute. If they wish to contribute to their own SIPP, then they must do this from their net pay and then declare on their self assessment.Comment
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