What is included in qualifying earnings for auto enrolment?
Qualifying earnings is the name given to a band of earnings that you can use to calculate contributions for auto enrolment. For the 2021/22 tax year this is between £6,240 and £50,270 a year.
Which employees are eligible for auto enrolment?
To be eligible for auto enrolment, employees must:
- Be at least 22 years old, but under State Pension age.
- Earn more than £10,000 a year.
- Normally work in the UK.
- Not already be part of a qualifying workplace pension scheme.
What are qualifying earnings for 2019 20?
Earnings thresholds
| 2019/20 | Annual | 1 week |
|---|---|---|
| Lower level of qualifying earnings | £6,136 | £118 |
| Earnings trigger for automatic enrolment | £10,000 | £192 |
| Upper level of qualifying earnings | £50,000 | £962 |
What are the minimum auto enrolment contributions?
The minimum auto enrolment contribution to an employee’s pension savings is 8% of qualifying earnings. Employers must pay at least 3% and the employee the remaining 5%.
What are the contribution rates for auto Enrolment for 2020 21?
contribution rates for employers and employees, where the minimum for a qualifying pension scheme in 2020/21 is 8% total contributions (including tax relief) on relevant earnings, of which at least 3% is from the employer.
What is the auto Enrolment threshold?
Earnings thresholds for previous tax years
| Pay reference period | ||
|---|---|---|
| 2019 – 2020 | Annual | 4 weeks |
| Lower level of qualifying earnings | £6,136 | £472 |
| Earnings trigger for automatic enrolment | £10,000 | £768 |
| Upper level of qualifying earnings | £50,000 | £3,847 |
Which employees are exempt from auto Enrolment?
There are two main circumstances where your employees will be classed as exempt from automatic enrolment to a workplace pension: If your employees earn either below £5,876 or between £5,876 and £10,000 annually, automatic enrolment into a workplace pension will not apply.
What are the contribution rates for auto enrolment for 2020 21?
What is the auto enrolment threshold?
Who is exempt from auto Enrolment?
If a director does not have an employment contract, they cannot be a worker and are therefore always exempt from automatic enrolment. This means that an organisation with one or more directors who do not have contracts of employment is not an employer if it does not have any staff other than the director(s).
What are the pension contributions for 2020 21?
What is the auto enrolment threshold for 2021 22?
Earnings thresholds for 2021-22
| Pay reference period | ||
|---|---|---|
| 2021 – 2022 | Annual | 1 month |
| Lower level of qualifying earnings | £6,240 | £520 |
| Earnings trigger for automatic enrolment | £10,000 | £833 |
| Upper level of qualifying earnings | £50,270 | £4,189 |
