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Workplace Pension Solutions

If you employ Six or more workers and run a payroll scheme? You must offer a work place pension scheme and automatically enrol eligible staff even if you employ only one person, its the law!

In accordance with the Pension Act 2008, Auto Enrolment applies to all businesses as from June 1st 2015

What you have to do to comply with the Law
  • Set up an auto enrolment workplace pension for your staff by your staging date
  • Create an Action Plan
  • Nominate a person to manage it
  • Assess your staff eligibility to auto enrol
  • Choose the software and check records
  • Apply for a workplace pension from providers who will accept your business
  • Automatically enrol eligible staff
  • Advise your staff this is in place by letter or email
  • Complete declaration of compliance with the pension regulator HMRC
  • On-going maintenance of staff records opt out, opt in, joiners, leavers, eligibility criteria
Really understanding Auto Enrolment

What Is My Staging Date?
Your staging date is set by the Pensions Regulator [TPR]. You may have already received a letter confirming your staging date.

I have received my staging date

If you have received your staging date you need to act now before it becomes a last minute dash as tens of thousands of small business will leave it to the last minute and find it very difficult to comply as you only have a few providers who will process your application and the fines will apply to your business if you have neglected to do this early or waited to act. Avoid the Fines and act now click here to get help.

I don’t know what my staging date is

Each employer has a date by which they need to comply with the law. This is called your staging date. We can help you find out your staging date call 0203 004 0601 now or complete our Contact Form for this free service.

Your staging date is when your business must have a workplace pension in place and be fully compliant with the law. The Pensions Regulator [TPR] recommend you start planning this process 12 months before your staging date.

Note: It can take at least 4 months to set up your scheme, payroll compliance, staff records and eligibility audit as it is not a case of completing some forms (see the regulators guide to timing).

DON’T PUT THIS OFF AS THE FINES ARE HEAVY IF YOU FAIL TO COMPLY
£400 initial and from £50 per day for up to 4 employees and £500 per day for five employees

What You Have To Do
  • Set up a compliant auto enrolment workplace pension for your staff by your staging date
  • Nominate a person to manage it
  • Carry out a detailed workplace assessment to identify eligible, entitled and non-entitled employees according to age, salary criteria
  • Choose the software and check records
  • Check that all payroll information is compatible with Auto Enrolment and staff records are current.
  • Apply for a workplace pension from providers who will accept your business
  • Configure your payroll
  • Automatically enrol eligible staff
  • Advise your staff this is in place by letter or email
  • Complete declaration of compliance with the Pensions Regulator [TPR]
  • On-going maintain records manage opt out, opt in, joiners, leavers, eligibility criteria on a monthly or weekly payment cycle.
My On-Going Responsibilities
Managing a work place pension requires additional work by your business

Brief points:

  • You need to pay the correct contributions on time to your staff pension scheme. If you don’t, you risk being fined by the Pensions Regulator [TPR]
  • Manage staff eligibility criteria, opt out requests for temporary and permanent opt out and opt in requests, joiners & leavers, variable employee contribution requests as some employees may want to increase their contribution to their workplace pension.
  • Employers have statutory duties to provide certain information to the Regulator about their pension scheme.
  • It’s important that you understand how much it costs to run your workplace pension scheme. These costs can include fees for administration, advice and services to members.
  • How to communicate with your pension scheme members and staff about the pension scheme including their contributions, costs and charges.
  • With the introduction of automatic enrolment, the requirement for an employer is to provide access for staff to a stakeholder pension scheme has been removed to avoid employers being subject to overlapping duties.
What If I Don’t Do It?
If you employ only one person and you run a payroll scheme you do not have a choice. It’s the Law

The Pensions Regulator [TPR] is empowered to enforce non-compliance for any business that does not set up a workplace pension scheme with auto enrolment by their nominated staging date.

As Payroll is connected automatically to HMRC with RTI [Real Time Information] all payroll activity is automatically ‘flagged’ if no contributions are made towards the work place pension this will trigger the initial penalty and alert [TPR] to your non-compliance

The fines for your business for up to 4 employees

£400 initial non-compliance fine then £50 per day thereafter until your workplace pension is compliant. This increases significantly to £500 per day for employers with 5 employees plus.

The Fines for your business for 6 plus employees

£400 initial non-compliance fine then £500 per day thereafter until your workplace pension is compliant

Back Dated Contributions

You will be expected to pay both contributions as the employer and employees back dated to the staging date. You will be responsible for the payment of the employees contribution, you will not be able to ask the employee to pay due to your negligence of not setting up the scheme by the staging date.

It’s cheaper to set up your workplace pension by your staging date and preferably before to avoid the added stress, pressure and avoid the inevitable last minute rush to comply. Contributions only need start at your staging date.

Avoid the rush and call 0203 004 0601 now or contact us for help
What If My Staff Don’t Want It?
The obligation and legal responsibility rests with the business to set up a workplace pension scheme and to have it in place by your staging date.

It is the right of the Employee to be automatically enrolled in the scheme if they meet the eligibility rules and for them to decide if they wish to ‘opt out’ not the employers right to choose.

You are not to solicit your employees to attempt to persuade them to ‘opt out’ of a scheme and you must not offer any form of inducement by means of cash incentives, pay rises or other methods to coerce or persuade eligible employees to ‘opt out’ all such actions are illegal and will be looked upon by the regulator very dimly and punishable with heavy fines and at worse for flagrant disregard for the rules a TWO YEARS term of imprisonment.

Employees Safeguards

The primary purpose is to encourage employers to positively embrace the benefits of offering a work place pension that your employees are automatically enrolled to ensure their participation.

Employees will be able to move from job to job with their own work place pension – Portability

Employees will be encouraged to save for their future eventual retirement with tax relief on contributions – Their Pension Pot

Less Reliance upon the state and more self-reliance is a positive move forward

Potential fines if your business is not compliant by your staging date
£400 initial, £50 per day for 4 employees and £500 per day for 5 employees.

Helping you understand about Auto Enrolment for your businessand setting up a Workplace Pension