WARNING – SPOT CHECKS BY THE PENSIONS REGULATOR
A recent notification from the Pensions Regulator has stated that they are now picking areas and doing spot checks for compliance with the Auto Enrolment Workplace Pensions legislation.
Are you affected by this?
If you have employees (even if only yourselves as Directors) and a PAYE scheme you will be subject to the auto-enrolment legislation.
Anyone with a PAYE scheme will have a staging date which is the date by which you must comply with the auto enrolment legislation. You will by now have had several letters from The Pensions Regulator – this can not be ignored!
If you are a new employer your staging date will be the first date on which you employ someone.
What should I do about it?
Director only payrolls
If you are a Director only payroll you can be removed from auto enrolment compliance we can do this on your behalf.
However if you have no other pension provision you may wish to set up a compliant scheme and make contributions to it at a level you can determine yourself as long as the contributions meet the minimum requirements.
Payrolls with employees
If you have eligible employees (as determined by the Pension Regulators criteria) you must have a scheme set up by your staging date and those employees must be auto enrolled into that scheme. Both the employer and employee are required to make contributions into the scheme at a percentage rate set down by the Regulator.
It does not matter if your eligible employees say they don’t want to be in a scheme. The scheme still has to be set up, they still have to be auto enrolled but they can opt out later.
This is not something you can ignore and there are substantial penalties for non-compliance starting at £400.
It is important to begin addressing this as early as possible to make sure everything is in place for your staging date.
We offer a fully compliant solution.
Please call Jane on 01993 822817, or email firstname.lastname@example.org, for more information on how we can help you.