The minimum contribution rates for Auto Enrolment workplace pension schemes are increasing from April 2018. Currently (in 2017-18) the minimum employer contribution is 1%, with the employee typically contributing 1% , making the overall contribution 2%.
Changes in the legal minimums from April 2018 will see employers contributing at a rate of 2% and employees contributing 3% to their workplace pension schemes.
We have been developing features in the software to make this procedure simple and straightforward, and as part of the procedure for creating a new payroll file for the tax year 2018-19 (which you will be able to do from the middle of March 2018 onwards) you will be prompted to click a button to make these changes automatically. There is nothing that you need to do now.
If you wish to inform employees of the upcoming changes in advance then you can produce a standard letter ( supplied by The Penions Regulator ) by clicking ‘Pensions‘ then ‘Letters‘ then ‘Rate increase 2018‘ from the main menu in Payroll Manager. This feature is available in the software now.