As an employer, it is important that you know your responsibilities in relation to automatic enrolment. Under the Pensions Act 2008, all UK employers are required to ensure eligible staff members are signed up to a workplace pension scheme.
Automatic enrolment has already begun. In this post, we will explain what will happen if your business doesn’t sign up for the workplace pension and explain how you can work out what you need to do, and when, in order to comply with the new legislation.
The Pensions Regulator is the public body set up by the UK Government to regulate work-based pension schemes. They provide employers with support in order to comply with the pension legislation, however, they also have the power to ensure compliance by taking enforcement action against any employers who choose to ignore their obligations.
Here’s an introduction to automatic enrolment from the Pensions Regulator:
Can I be fined for missing or ignoring my staging date?
Yes. The Pensions Regulator has the power to fine individuals and companies who miss or ignore their staging dates.
If you have failed to meet your legal duties, you will first receive a warning letter. Failure to take action can lead to a statutory notice being issued, which in turn can lead to a fixed penalty notice of £400.
Further failure to comply can lead to an escalating penalty notice, which could land you with daily fines of between £50 and £10,000, depending on the size of your business and number of employees you have.
In addition to these fines, you may also be required to pay back any missed contributions and backdate contributions to your staging date. Wilfully failing to enrol eligible staff into a workplace pension scheme may lead to prosecution and a two-year prison sentence.
Does Automatic Enrolment apply to me?
If you are unsure of your role and responsibilities as an employer, it’s important to take action immediately. We recommend that you visit the Pensions Regulator’s website online and use their ‘Duties Checker’ Tool. It will help you work out what you need to do and ensure you complete all of the tasks required of you by law. Below we have included links to a range of useful information provided by the Pensions Regulator. We strongly recommend you take the time to explore the site in full.
- Access the Duties Checker here
- Find out your staging date here
- Step by step guide to automatic enrolment for employers
Auto enrolment made easy for businesses in Leeds
If you want to make your auto enrolment effortless, get in touch with UWM, a Leeds-based team of accountants. We’ve helped hundreds of businesses navigate the new workplace pension and we’re ready and waiting to help you too. Find out more about our auto enrolment servicesor get in touch today on 0113 231 0202 for an informal chat.
