The law on workplace pensions has changed. If you have at least one member of staff you must ensure that you comply with new duties, including enrolling those who are eligible into a workplace pension scheme and contributing towards it. This is called automatic enrolment.
If your employees are:
aged between 22 and State Pension age
earn more than £10,000 a year
work in the UK
you must automatically enrol them in a workplace pension.
It is called auto enrolment because it is automatic for your staff – they don’t have to do anything to be enrolled into your pension scheme, but it is not automatic for you.
You may have received or will be receiving a letter soon from the Pension Regulator. Most employers will have to set up a pension scheme and make contributions for their employees. The rules are not optional and failure to comply will result in severe escalating penalties!
It is easy for The Regulator to check compliance through your payroll submissions and already some large companies have been hit with hefty fines.
Many employers believe as their ‘staging date’ is some time away that they will delay sorting out their responsibilities. However it should be noted that it is not possible to implement the requirements overnight and expense will be avoided by acting promptly to establish a timely plan. It is estimated that there will be about 130,000 employers per month staging at the peak time – do you want to be one of those leaving it to the last minute?
You may run your own payroll, and have been told your software is AE compliant, but where is the actual pension scheme? This cannot be set up by the software, but requires your action.
I have linked up with an auto enrolment specialist who specialises in handling the set-up of pension schemes for micro businesses. Get Auto-enrolment ready now and avoid the crunch!
I cannot stress most strongly how important this matter is so please do not delay, contact me now.