Growth Hive UK’s Post

Recently, the Ministry of Labour and Employment, significantly reduced the rate of damages payable by employers under Para 8A of the Employees’ Deposit Linked Insurance Scheme, 1976 and employer’s penalty rates under Para 5 of the Employees’ Pension Scheme, 1995 for defaults in contribution payment or payment of charges. Previously, damages and penalties were calculated based on the duration of default: 5% for two months, 10% for four months, 15% for six months, and 25% for periods exceeding six months. Pursuant to the amendment, a standard rate of 1% of the arrears of contribution per month or part thereof will now apply uniformly.

Will employers keen to retain their staff, but spooked by the National Insurance Contribution hike, choose increased pension contributions and death in service benefits instead of pay rises? Neither attract employer NIC. You’re welcome. #employer #NIC #Budget #financialadvice Thorntons Wealth

💼Is your business #budget ready? 💷Employers face a potentially larger monthly #payroll bill if the chancellor levies #nationalinsurance (NI) on employer pension contributions. 🔌And there is also talk about scrapping “unfair” #taxbreaks on #electricvehicles, in this month’s budget. 😖Slightly annoying after all the cajoling of people to get electric vehicles to save on tax, better for the environment and cheaper to run etc etc! 🙏Consultants and pension providers are urging Rt Hon Rachel Reeves not to go down this route, saying it could lead to #employers reducing more generously-funded workplace #pensionschemes. 😖Thought we needed to save for our retirement? 🗝️Hit to #autoenrolment. Pension specialists said the introduction of NI on pension contributions would counter the progress that has been made to increase pension provision via auto-enrolment. ⏳It will be interesting to see what actually happens in the budget, as the SME's that we work with are all quite nervous about this one! 🔮I'd love to hear what you think will happen in this year's budget?

For those of us that belongs to a defined contribution pension or provident fund the numbers just don't add up. If your monthly contributions is say 12.5% of your basic salary do you know what this means? It means that for every 8 months worked you only save 1 months salary. For every 4 years worked you save 6 months salary. For every 24 years worked you only save 3 years salary?

Beth hits the nail on the head, As we all try and get our heads around the budget, One thing for sure is the impact on Businesses. The ability to support utilising Salary Sacrifice on a number of different employee benefits and options is a big plus and already getting businesses reaching out to discuss options with us. Want to know your options and possibilities as a business - reach out or book directly in to speak to me or Beth: Book time to meet with me One Financial Solutions - Not just another financial planning firm, Truly looking to support businesses across the UK. #onefinancialsolutions #SalarySacrifice #EmployeeBenefits

How salary sacrifice benefits your clients 🚀 This is where employees choose to give up some of their salary in lieu of a larger pension contribution from their employer. These are known as employer contributions. Although there is no limit on tax relief for the employer contributions (as long as the wholly and exclusively rule is met), it’s important to remind clients that the annual allowance still applies. Watch our Bitesize Technical video to learn more: https://lnkd.in/eDmKVhhT

Fancy having to carry on working in your 70s? Neither do we! However, sadly, many UK workers may have no choice. A recent report suggests that the UK State pension age may have to rise to 71 by the year 2050. Add to that growing concerns about the State pension not keeping pace with the rising cost of living and you can see why more and more workers are choosing a private pension. For employers, a workplace pension is also a vital to create an attractive employee benefits package to aid recruitment. Whether you’re looking for a SIPP or workplace pension, talk to your IFA about Options! 👉 https://lnkd.in/ehcczfYp 👉 https://lnkd.in/eZ6ESAyp 👉https://lnkd.in/e2FkrATD #SIPP #WorkplacePensions

Read our valuable insight into pension contributions 👉 It is a statutory requirement for companies with UK employees to have employers provide pension contributions for employees through payroll. Where employees ‘opt out’ and don’t make a personal contribution then no employer contribution is required by statute. Competition for qualified individuals in the workplace, make it not unusual for employer contributions to exceed statutory rates. Employees may also increase their own contribution and there is a theoretical tax advantage to doing this, but within certain limits.  Furthermore, advanced voluntary contributions are usually made by employees in the higher rate tax band to help minimise their own tax due to an optimal level. Food for thought? Do get in touch for further information or advice on this subject: www.v-sub.com

The percentage of an employee’s pensionable earnings they contribute to the CPP. Self-employed individuals contribute double, or effectively both the employee and employer-matched contributions. For 2024, the employee contribution rate is 5.95%, and the self-employed rate is 11.90%. Aamir J. 👇👇👇 🌐 www.finnection.ca 📧 info@finnection.ca 📞 647-795-5462 #AccountingExperts #EffortlessFinancials #BusinessSuccess #Finnection #AccountingSolutions #BusinessBookkeeping #TaxFilingExperts #PayrollProcessing #FinancialManagement #MaximizeProfits #NumbersMadeEasy #SimplifyYourFinances #FinancialSuperheroes #EfficientBookkeeping #StrategicTaxPlanning #BusinessGrowth #AchieveYourDreams #FinancialPeaceOfMind #StreamlineYourBusiness #AccurateRecordKeeping #BoostYourBusiness #ProfitsAndSuccess #FinancialConsultation #TakeChargeOfYourFinances

It’s FAQ Friday! Your Payroll Questions Answered" This week’s FAQ: “How do I calculate pension contributions in the UK?” In the UK, employers are legally required to enrol eligible employees into a workplace pension. Here’s how pension contributions are typically calculated: Employer contributions: At least 3% of the employee’s qualifying earnings (usually anything between £6,240 and £50,270 per year). Employee contributions: At least 5% of their qualifying earnings, which includes tax relief. The total minimum contribution is 8% of the employee’s qualifying earnings. 💡 Note: If your business offers a salary sacrifice scheme, the contributions may differ! Want to simplify your pension process? We manage everything from automatic enrolment to tracking contributions for you. #eastbourne #sussex #eastbournebusiness #eastbournelocal #payrollservices