Don't ignore your latest obligations as an Employer
News & blog » Pensions for your employees?
Well perhaps until now, it was your choice and often used as a benefit to attract, recruit and retain your team.
However, with the introduction of the new Workplace Pension legislation, it is now down to many factors under what the government are calling Auto Enrolment. It is now a consideration as to whether the employee, has a right to join a pension scheme, has a right to opt in to join or must be enrolled and given a pension with only their personal option to opt out.
One of our past articles provides an overview of the requirement and considerations, including the obligations, checking your start dat (staging date), the contribution guidelines, how you assess your workforce etc. Please click here to read the oast article in full
What if you do nothing and decide not to comply with the legislation?
If you fail to comply with your duties, The Pension Regulator may take enforcement action and issue a notice and / or a penalty. There is a fixed penalty notice of £400 and an escalating penalty notice that STARTS from £50 per DAY. To read more about the notices and penalties, please click here.
There are primarily two key stages to Auto Enrolment. Firstly, give yourself enough time to set up a pension scheme that is compliant with the requirements. The guidance is currently six months. Secondly, then consider the day to day administration requirement, such as what you need to tell your employees, their individual correspondence and ongoing monitoring. You will find that most of this ongoing administration will be linked to your payroll and find software is available to provide support covering these administrative requirements.
So have you considered your obligations and duties related to the Workplace Pension legislation and Auto Enrolment? If not, the advise is to not leave it too late. The forecast is that many micro / small businesses will need to stage their schemes from February next year and the increased demand on the government system and various scheme providers will be seen at its greatest test during this time.
Auto Enrolment brings many new obligations and duties for employers. Have you considered what you want to do, are able to do or simply need to outsource for someone to administer on your behalf?
Below is a list of of some of the key duties to help you consider whether you will do the administration yourself, delegate or outsource to someone like a bookkeeper, accountant or payroll agent.
|Check the start date (known as the staging date)||Myself / Colleague / Outsource|
|Be the point of contact for the Pension Regulator||Myself / Colleague / Outsource|
|Check who in the workforce you should enrol||Myself / Colleague / Outsource|
|Create an action plan for implementation||Myself / Colleague / Outsource|
|Calculate the new cost of payroll||Myself / Colleague / Outsource|
|Check the employee records are accurate and complete||Myself / Colleague / Outsource|
|Ensure the payroll processes allow for Auto Enrolment compliance||Myself / Colleague / Outsource|
|Choose a pension scheme||Myself / Colleague / Outsource|
|Assessing and enrolling staff||Myself / Colleague / Outsource|
|Manage the opt outs or opt in requests||Myself / Colleague / Outsource|
|Communicating with your staff||Myself / Colleague / Outsource|
|Keeping up to date with ongoing duties||Myself / Colleague / Outsource|
|Complete the declaration of compliance||Myself / Colleague / Outsource|
|Administer the Re-enrolment requirements||Myself / Colleague / Outsource|