Auto enrolment is looming large. If you are an employer there is no getting away from it. But here at Central Business Services we can take the headache out of the whole process for you.
Everybody keeps talking about Auto enrolment, you may have even started receiving letters about the subject from various sources, but what does it really mean for you the employer?
The law on workplace pensions has changed and now, if you employ staff, you will need to put a “Workplace Pension” in place to comply with the regulations.This requirement has applied to larger employers since October 2012 and by 2018 will apply to all employers.
Automatic enrolment applies to employees who:
- Are not already in a pension scheme
- earn more than personal allowance, currently £10,000 a year
- are over 22 and are below the state pension age
- work in the UK all or most of the time.
The pension will need to be up and running before a specified date – “Staging Date”. Staging Dates are set by reference to your PAYE Reference number. You can check your staging date by visiting The Pensions Regulator website.
Deciding upon and setting up a scheme will take time. So it is important to prepare as early as possible to give yourself enough time to review and update your pension scheme, processes and systems. If you leave it too late and aren’t ready by your staging date The Pensions Regulator may take severe enforcement action.
Penalties can include:
- A flat £400 fine
- Daily fines of between £50 and £10,000
- Court action.
To avoid penalties you must ensure:
- Your scheme is up and running by your staging date
- You remain compliant
- You fix issues quickly.
Here at Central Business Services we can take the headache out of Automatic enrolment.
- advise you of your staging date
- ensure your scheme is set up on time
- take care of all the necessary, ongoing administration to ensure you remain compliant
- Deal with queries should they arise.
Which most importantly will leave you time to run your business with total peace of mind.