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It is important to remember the contributions for automatic enrolment for pensions.
The contribution levels continue to rise until the employer is paying a minimum of 3% towards the pension and the total minimum contribution reaches 8% – with the nanny making up the rest.
Nannies can choose to opt out of the scheme whenever they wish. Employers must not force a nanny to opt out of the pension scheme or indicate at an interview if you opt out this would be a major factor in hiring a person. Doing these acts will result in a penalty from the Pension Regulator.
The pension contribution rates for 2018/19 and 2019/20 onwards are:
As an employer, you must provide nanny’s with duties of auto-enrolment and issue a letter when enrolled/postponed/if not eligible.
A Declaration of Compliance must be completed via the Pension Regulator within 5 months after your staging date. Failure to do so will result in a £400 penalty.
Re-enrolment is every 3 years. If nanny had opted out of a pension scheme, she will have to be put back in, notified in writing and a Declaration of Compliance submitted to the Pension Regulator again.