SCOTTISH business owners have been warned that action is needed immediately as a major change to pensions in April approaches quickly.
Mandatory pension contributions is set to increase by 3%, and according to leading accountants and business advisers French Duncan LLP, businesses need to make changes now.
From April 6, employers making the minimum 3% contribution must ensure employees make 5% in pension auto-enrolment contributions in order to meet the minimum 8% total contribution.
Currently, the existing provision is 2% for employers and 3% for staff.
Businesses operating PAYE payrolls are legally required to make the minimum contributions for their qualifying employees at the least.
Where employers cover the current minimum contribution requirement of 5%, staff are not required to make contributions.
Linda Kelly, head of payroll with French Duncan LLP, explained businesses will need to adjust their systems.
“For businesses paying monthly this is only two pay runs away so if companies have not implemented these changes they must do so straight away.”
But, Kelly added, not all increases apply to all businesses – so firms should check, either in their pension scheme documentation or by contacting their pension provider, to find out how they will be affected by the change.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here