The WPS Wealth Group Ltd
What is Auto Enrolment?
Pensions Auto Enrolment will have an effect on any business in the UK that employs staff, whether it’s just 1 person or 1000. Starting from October 2012, and phasing in depending on the size of the employer, all eligible workers will need to be automatically enrolled into a Qualifying Workplace Pension Scheme with mandatory minimum contributions from the employer and the employee.
It is essential to be prepared, to ensure the changes required to systems are identified and all parties, including HR and payroll, fully understand what is required of them. Employers need to understand their duties associated with these new laws, as they could be potentially time consuming, complex to manage and costly to administer:-
Compliance Requirements for the Employer
Companies will be required to do the following:
- Access eligibility of all employees
- Register with the regulator
- Ensure that their pension schemes comply with all regulations
- Manage the enrolment process for all employees
- Manage and update the opting in and out of employees
- Manage contributions
- Ensure that inducements to opt out are not offered
- Provide regular updates and employee communications
- Re-enroll opted out employees on a regular basis
- Keep accurate records of all the above
Failure to comply
If an employer does not comply, the following consequences will apply:-
Please note that the fines are not small change…
After that, it can impose daily fines for Persistent offenders; these are dependent on the size of the employer. These fines will carry on until the company complies.
These escalating fines are as follows:
|Number of employees||Daily fine|