Pensions - Auto Enrolment - What’s it all about?
Date: 16/03/16 | Author: Sean Toomer
The law on pensions has changed. Now, every employer with at least one employee has to provide their employee’s with a pension. It’s called ‘Automatic Enrolment’ (AE) because it’s just that – automatic. Employees do not have to do anything – but Employers (that’s you) do. Whether you’re a hairdresser, an architect or employ a personal care assistant, if you employ at least one person you are an employer and you have certain legal duties.
What if I don’t do it?
Employers who do not comply will face enforcement action which can include fines and / or prosecution. See here.
What you need to do and by when?
Legal responsibility for automatic enrolment lies with the employers but we’re here to help. We’ve devised our own additional service that clients can choose, given advice/support if they wish to undertake Auto Enrolment themselves, or point them to a third party provider.
It’s important to understand what to do and by when and this will depend on the circumstances of your staff. To work this out look at the timeline and tasks here.
Each employer should already have been sent a letter detailing a ‘Staging Date’. It’s at this staging date that an employer must have a pension scheme in place and contributions being made.
Most clients Staging Dates start in 2016/2017. We will remind clients of these before their date arrives.
If you wish to know your staging date now, simply reply to this e-mail.
How we can help
We’ve devised 3 options for our clients.
Clients can deal with their Auto Enrolment responsibilities themselves
For this, clients will deal with the entire process themselves, from determining which employee’s to enrol or not, giving employees their statutory notices, to setting up the scheme and arranging payments and deductions on the payroll process.
We deal with this for clients
We can take all the stress of this away and deal with the entire process – even informing your staff. We can do this for just a one off set up fee of £295 plus VAT and then no ongoing maintenance/submission fees to deal with the ongoing responsibilities.
Clients can use a Third Party provider
In this case, you’d source and set up a new pension scheme with a third party provider. Charges start from around £1,000+. We can happily recommend a provider to clients if they wish.
What to do now
Auto-Enrolment is a big change and it shouldn’t be taken lightly. Take time to consider your options and please let us know when you’ve made a decision and any assist you need from us.
There's no comments for this item. Why not leave the first comment below?