Auto-Enrolment for Sole Traders
What is an Auto-Enrolment Pension Scheme?
The Auto-Enrolment Pension Scheme has been recommended to ensure that all employees are automatically enrolled into a workplace pension scheme by their employers. Any member of staff that is aged 22 up to the state pension age and earning £10, 000 or more must be auto-enrolled into a workplace pension scheme. It is also important to note that the employer will also have to contribute to the employee’s workplace pension. Every employee has the right to opt out of the workplace pension which must be done in writing.
How does Auto-Enrolment apply to Sole Traders?
This applies to any sole trader who employs members of staff. However, if a sole trader is the only member of the business then auto-enrolment does not apply to them. But if the sole trader employs a member of staff, meaning that there are now two employees or more including the sole trader themselves, then the auto-enrolment rules apply.
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