Auto enrolment is designed to make sure more people save towards their retirement. Now it’s the turn of small employers to start making pension payments for their staffThousands of families have started receiving official letters telling them they need to set up a pension method for their nanny during the next few months. Many of those receiving the “act now” letters from the Pensions Regulator probably don’t assume of themselves as employers,and will feel daunted by the prospect of having to set up a staff pension scheme for their nanny.
Both the employer and the nanny will have to contribute to this pension. Calculations done for Guardian Money propose that by 2019-20 the amount a typical family is required to pay in could easily be £400-£500 a year, with the nanny having to pay in perhaps £600 of her or his annual pay.
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Source: theguardian.com