Are you ready for Auto Enrolment?
Auto enrolment is a new legal requirement for all employers in the UK to provide a pension for workers aged between 22 and State Pension Age who ordinarily work in the UK.
This applies even if you have one employee.
An example would be residential blocks who employ a caretaker or an administrator.
Frequently asked questions:
- Does my business need to participate in auto enrolment?
All employers are legally required to automatically enrol qualifying staff into a pension scheme and make contributions. You will also have to tell your staff about the scheme you put them in and allow other staff to join if they request to do so.
- Are there penalties for non-compliance?
If your business does not fulfil the measures set in place, it will be deemed as acting unlawfully and escalating fines will be payable for each day that you are non-compliant with more serious actions taken for prolonged and repeated breaches.
- What is my staging date?
Your Staging Date is the first date that your business must begin to comply with the legislative requirements for auto enrolment. Even if you postpone the assessment of your workers until a later date, you must as a minimum, issue communications by this date. Details of when your Staging Date is can be found on the Pension Regulator website.
- Do the employer duties apply to employers who already have a pension scheme?
Unless every worker is a member of that scheme, you will almost certainly have to undertake some sort of auto enrolment. Although your current scheme may meet the qualifying criteria, you will still need to undertake a communication exercise and factor in additional payroll requirements.
- As a self-employed person in my own company, do I have to provide a pension scheme?
No. If you are the sole person in your company, you will not need to provide a pension scheme for yourself. However, if you employ anyone else you will need to enrol all employees and yourself upon a qualifying scheme.