Employers face penalties over pensions auto enrolment

2014-10-13 Jennifer Renney posted:

The press have recently reported that a significant number of small businesses are walking towards a pensions disaster, as they are missing the deadline to introduce pensions for staff. As a result employers could be facing expensive fines and penalties.

Auto-enrolment started being rolled out in October 2012 for large companies, and gradually over the last 2 years, auto-enrolment has been rolled out to smaller companies. Since 1st October 2014, businesses employing 60 or more members of staff must put their workers into a pension scheme. If you employ 59 or less members of staff and you want to find out your staging date, type your PAYE reference online with the Pensions Regulator: http://www.thepensionsregulator.gov.uk/employers/tools/staging-date.aspx

Whilst large businesses have found it painless to make the transition to the new rules, hundreds of thousands of small businesses are struggling as they have never before offered any kind of pension provision. It is being reported that small businesses are requesting 3 month extensions from the Pensions Regulator and that other small businesses do not even know of the changes, let alone when they are supposed to be compliant.

In short, the best option for businesses is get on with it. The pensions industry for enrolment scheme providers and consultants are struggling to cope with demand, and implementing pension schemes are taking longer to complete. A huge amount of information is available online with the Pensions Regulator at http://www.thepensionsregulator.gov.uk/index.aspx.

But the work of finding a scheme provider, setting up the administrative systems, consulting employees and complying with all the regulations is down to the employers themselves. Once you have contacted a pensions provider the process can take over 6 months to complete.

If you require any advice or assistance with pensions in the workplace, contact us today for fast effective relief on 01225 632240 or email us at info@renneyandco.com.

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