Hello, and welcome to this video for business advisers on automatic enrolment. Today, we’re going to be looking at how you can help your clients who employ workers for short periods of time. This is particularly common in industries like farming, retail, or catering, when businesses take on extra staff during peak seasons. The first thing to remember is that the laws on automatic enrolment apply to all employers, even if they have a high turnover of staff, and they need to think about it in the same way as they do their tax return or their national insurance contributions. It’s just business as usual. So they need to find out their staging date, and then go through the steps that apply to them. If your client has any employees who stop working for them within three months – that’s the maximum length of time you can use postponement for – they can use this option for some or all of their staff. It’s important to remember that postponement is applied per individual – so your client can use it each time they take on a new worker.
You should also know that – postponing automatic enrolment doesn’t change the staging date, or the deadline by which the employer needs to complete their declaration of compliance. There’s more information on our website about postponement but, essentially, if they postpone assessing any of their staff they need to write to them to let them know. They also need to let their staff know that they can join a scheme during the postponement period, so it’s important to give automatic enrolment plenty of thought and preparation before the staging date. We’ve got a template letter available on our website that you or your client can use to help with this.
At the end of the postponement period, they’ll need to automatically enrol anyone who still works for them and meets the age and earnings thresholds – that’s £192 per week, and aged between 22 and the state pension age. If an employer doesn’t have any workers who meet the age and earnings criteria to be enrolled then they only need to set up a scheme if and when a member of staff asks to join or their circumstances change (that’s if they turn 22 or they start earning over £192 a week).
If one of their staff members earns enough to be automatically enrolled one month, but then their earnings drop, they’ll stay in the scheme but it’s likely that neither they nor your client will need to make contributions. For more information about getting a scheme in place and what to look out for when choosing one, visit the ‘choosing a pension scheme’ section on our website. A lot of employers don’t realise that they have to reassess their workers each time they’re paid, to see if they meet the criteria for being automatically enrolled. Having the right payroll software can really help employers with seasonal or temporary staff as it will automatically assess them each time they get paid, calculate contributions where necessary, and some types have a postponement function built into them. If you want to know more about payroll, we’ve produced a video covering this subject, and the link’s on screen now. Finally – one thing that some employers in this sector have in common is that some of their workers have English as a second language.
In this case, their pension provider may offer them the option of translating the letters that they issue to staff, so check with your client if this is an important factor for them. That’s it for today – thanks for joining me, and I’ll see you again soon..
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Hi Folks, Dave Waring again with FitSmallBusiness.com in Today’s Lesson Of The Day in our last video we wrapped up our series on how to start and run a successful small business with a look at how to set up commercial office space. In today’s video we’re gonna begin a new series on how to hire and manage employees with a look at the advantages and disadvantages of working with independent contractors versus full-time employees. So let’s get started! As we discussed in our article on becoming a freelancer Intuit predicts that forty percent of the US workforce will be part time workers or full-time freelancers by 2020 when you add in all the other independent contractors from around the world there is an enormous pool of talent that you can leverage to help grow your business without adding full-time staff. At Marc Waring Ventures the parent company of FitSmall Business we’ve currently work exclusively with independent contractors to help us with everything from writing articles to accounting. I’ve also worked as the head of sales and business development for a large organization where we only hired full-time employees.
Here’s what my experience is been. The advantages of working with independent contractors versus full-time employees costs are lower with independent contractors verses employees. You save on wages. You can work with people from lower-wage countries and assuming you pay by the project you don’t pay for downtime or time they spend learning how to do the project you save on taxes. When hiring employees you not only have to withhold their taxes but your company also has to pay Social Security, medicare and unemployment taxes. This is over and above what the employee pays. Independent contractors pay all their own taxes. You save on insurance. Most states require you to buy workers compensation insurance for employees.
This is not required in working with independent contractors. You save on benefits many full-time employees expect benefits such as health care which will soon be a requirement for many businesses 401 K plans and paid time off it’s harder to get sued you’re not subject to the same labor laws with independent contractors as you are with employees as we discussed our article the hidden costs of hiring employees which I’ve include a link to blow this video just the taxes insurance and benefits portions I just outline can add up to 10 percent or more of the employee’s salary with independent contractors you can also be very specific about the skills you’re hiring for many small businesses do not have enough a specific type of work to warrant hiring a full-time person for that role if we had hired a full-time employee when we started out we would have needed them to be able to do a whole host of tasks including writing accounting web work and more it is very unlikely that this person would have been highly skilled in each of these areas because we went with independent contractors however we were able to find the person who was great at writing another who was great accounting and another was great web work this is true even though we didn’t have anywhere close to full time work for any of them in the beginning you have much more flexibility when working with independent contractors when you hire full-time employees they expect to work and be paid full-time wage regardless of how much work you have to them working with free lance is much more flexible because it allows you to give out work when you have it and reduce the amount of work you’re paying for during slow periods good independent contractors are easier to manage when you work with an independent contractor you are really working with another business so they’re not expect you to manage them this is not mean that you don’t need to give guidance are set priorities and deadlines it does have a main you do not need to look over their shoulder or spend as much time with things like training and performance reviews here the advantage of working with full-time employees verses independent contractors for some types of businesses like retail stores and restaurants working with free lance is not really an option at least fear primary employees like for salespeople waiters and cooks however this is not the only reason why you may want to hire full-time employees in a previous position Iran sales business development for a large brokerage firm many of the projects that my business development team worked on could have been easily outsourced however we decide to do than and house for three reasons: number one is that we viewed the projects and the firm’s knowledge of how to execute them as a competitive advantage that the company number two was that some of the information we’re dealing with us was confidential and we did not want it leaked outside the farm and finally you want to bring up talent from within the organization who could take on management and other high-level roles since full-time employees generally do a variety of different types of work for you they’re generally better suited to grow with the organization full-time employees are also better able to jump in and take care variety different tasks as they arise this thing contrast independent contractors who are generally hired for well defined tasks finally while not impossible with independent contractors team building and getting people to work together in a tight-knit group is generally much easier with full-time employees that’s our video for today if you have any questions or comments please feel free live in the comment section below also be sure to stay tuned for the next video in our how to hire and manage employees series we’ll discuss how to hire independent contractors for more bread advice on how to start and run a successful business be sure to visit us at that small business dot com today thanks for watching
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