Category: PAYE Umbrella Company News

All employers, including PAYE umbrella companies' must ensure they understand the implications of the National Employment Savings Trust (NEST) rules, it has been advised.

Under the pensions reform, it is compulsory for employers to provide retirement provision and automatically enrol their staff in a scheme.

This is great for staff, but will place added burdens on employers, said Elaine Gibson, senior policy advisor at the Institute of Payroll Professionals (IPP).

"The government has also confirmed that auto-enrolment is going to stay," she added.

"Although it is a very positive thing, it will be a bit of a culture shock for employers."

Employers should take the time to revisit their pension schemes and consider how they can best provide provision to staff, Ms Gibson suggested.

Automatic enrolment is due to start with larger employers from 2012, with smaller firms having to meet the regulations in the following years.

Posted by Sarah Putt