Pension Auto Enrolment

Here at West London Accountants, we’ve been getting a lot of questions from employers about Pension Auto Enrolment.

Pension Auto Enrolment, AKA Automatic Enrolment, is a law which means all employers must automatically enrol their workers into a workplace pension scheme.

While your employees do not have to do anything (hence the “auto”), it certainly does not mean that you, the employer, don’t have to do anything: there are certain actions that need to be carried out to make sure your staff are enrolled.

Every employer must automatically enrol workers into a workplace pension scheme if they:

  • are aged between 22 and State Pension age
  • earn more than £10,000 a year
  • work in the UK

Every company with employees has a date by they have to join by, called the staging date.

Once you know this, you need to let the regulator know who in your company will be the person managing the process / the main point of contact.

Once you have completed the above, you’ll need to carry out quite a few steps before your staging date. These range from working out who is and isn’t qualified for the scheme to actually making sure you communicate all the information to your employees. If all this sounds a bit daunting, worry not, The Pensions Regulator has prepared this action plan.

Once done, your work isn’t complete (we’re afraid it will never be complete if you’re in the lucky position of having a growing business!). You’ll obviously need to make sure that your company is making the appropriate contributions to the scheme, keep detailed records for the authorities and remember to include new joiners!

Lastly, you have to complete your declaration of compliance when you’ve automatically enrolled your employees. This confirms to the regulator that you have fulfilled your legal duties.

Needless to say, this is one of the biggest changes that employers have been faced with in the last few years and the old adage of “failing to prepare is preparing to fail” has seldom applied more than in this situation. This is a legal requirement for all companies – you could be facing a fine if you don’t comply.

As always, if you need to ask about any of the issues raised in this blog, please contact us and we’ll be only too glad to help.

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