As many of you will be aware, the law on workplace pensions has changed. Employers now have a duty to enrol eligible members of staff into a pension and a duty to contribute towards this. This is the case even if there is only one employee in the company. This can be an onerous task for smaller employers and may take a substantial amount of time. The Pension Regulator recommends that companies leave themselves 12 months to prepare for auto-enrolment. Those dates are quickly approaching and you would be wise to start thinking about putting together the appropriate systems. Here is a table of the dates on which auto-enrolment is required to be in place. It is dependent on the size of the company and the type of PAYE scheme the company operates.
In order to help smaller companies, the Pension Regulator last week released a new web guide. The guide is specifically aimed at employers with between one and fifty staff. It explains how to complete key tasks such as knowing when to be ready, providing a point of contact for the regulator, checking who needs to be enrolled and creating a plan of action. This should prove useful to smaller employers as they try to prepare for auto-enrolment. As a reminder, small employers can expect to receive a letter in the post in the coming few months. As a heads-up though, here is the eleven point step-by-step guide provided by the Pension Regulator.
If you have any queries about auto-enrolment and the effects it may have on your business, then please do not hesitate to get in touch!