Paul Leatherbarrow, Liverpool
Staging and phasing The introduction of the new employer duties will be rolled out from 2012. known as 'staging'. The contribution levels for Defined Contribution schemes will be phased in,gradually building up to the minimum levels required by law. Staging The employer duties will be staged over four years from October 2012 to 2016, The size of an employer will be based on PAYE data.Subject to certain conditions, employers will be able to automatically enroll their employees in advance of their staging date but not before October 2012. • The duties will be introduced by the size of employer with the new duties applying to the largest to medium-sized employers up to July 2014, followed by small and micro employers from August 2014 to February 2016. • New PAYE schemes will be staged in at the end of the staging period from March 2016. Phasing (DC schemes) The minimum contribution levels for Defined Contribution schemes are not being introduced in full at the start. Instead they are being increased over time. This is referred to as 'phasing'.The obligations will be built up over three phases, with the final phase being when contributions have reached the final minimum levels: Phase Duration Employer minimum Total minimum contributon contribution 1 1 October 2012 to 1% 2% 30 September 2016 2 1 October 2016 to 2% 5% 30 September 2017 3 1 October 2017 to 3% 8% onwards Job holders will get tax relief on their contribution The information provided is based on our understanding of the relevant legislation and regulations and may be subject to alteration as a result of changes in legislation or practice. The material is for general information only and does not constitute investment, tax, legal or other form of advice. You should not rely on this information to make (or refrain from making) any decisions. Always obtain independent, professional advice for your own particular situation.
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