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Client with non-eligible that has just triggered AE but normally wouldn't - ADVISE please

maidokent
  • Member PM.Dip
  • Practice Licence
  • 36 posts
  • # 114932

Dear All,

I feel I am pretty confident in all things AE but I'm not sure how to respond to this. 

My client has one eligible staff member and one non-eligible.  The non-eligible has just be paid £20odd over the £833 threshold and has therefore triggered AE.  She doesn't want to be enrolled in the pension and ordinarily would be about £150-200 below the threshold so normally no problem.

My client has deferred enrolment for three months.  (NB client does his own payroll so tends to act before asking)

He is now asking if that was the right thing to do.  I am thinking "yes as employee doesn't want to be in pension scheme" but what happens after the three month deferment priod is up?  Will there be a request to enrol if she is back under the threshold?  And if she pops over it again, what then?

 

Advise please

Steph
northeast
  • 3 posts
  • # 114936

maidokent said:

My understanding is that postponement is the correct option for a pay spike. They should be issued a letter explaining they have been postponed for 1-3 months and that if they are eligble when the postponement ends they will be auto enrolled. The employee has the option to opt in if they wish, although in your case they are not interested. Once postponement finishes, assess again and issue relevant letter - likely to be a non-eligble letter.
The only issue to watch out for is that you cannot postpone again straight away if they are over the threshold for the next pay period - you must have at least one pay run in between. So if the pay spike is likely to be more than every 6 months I would probably enrol them and let them opt out.

 
northeast
  • 3 posts
  • # 114937

northeast said:

My understanding is that postponement is the correct option for a pay spike. They should be issued a letter explaining they have been postponed for 1-3 months and that if they are eligble when the postponement ends they will be auto enrolled. The employee has the option to opt in if they wish, although in your case they are not interested. Once postponement finishes, assess again and issue relevant letter - likely to be a non-eligble letter.
The only issue to watch out for is that you cannot postpone again straight away if they are over the threshold for the next pay period - you must have at least one pay run in between. So if the pay spike is likely to be more than every 6 months I would probably enrol them and let them opt out.

 

”

 
  • 3 posts
  • # 115460

Your sharing helps me much. Tks
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