It’s National Payroll Week, and to mark this occasion we would like to highlight the importance for all UK businesses to implement an automatic enrolment work pension scheme for their employees.
What is auto-enrolment?
Automatic Enrolment is a Government initiative to help more people save for later life through a pension scheme at work.
The initiative is a new law which means that every employer must automatically enrol workers into a work place pension scheme if they are:
- Aged between 22 and state pension age
- Earn more than £10,000 a year
- Work in the UK
The scheme is currently being phased into the UK and all employers must be using the scheme no later than 01 February 2018.
If you do not comply
If you are an employer who does not comply with this law you will face enforcement action which can include fines and / or prosecution.
We recommend you understand some key points:
- The responsibility for complying with the employer duties rests with the employer.
- If you don’t comply, you’ll face enforcement action in line with our risk-based approach.
- Enforcement action starts with statutory notices and is followed by penalty notices. Further noncompliance may result in court action.
- If you have received a penalty notice, you can now pay your notice online.
Introducing the scheme into your business
There are many ways to implement the auto-enrolment scheme in to your business but we recommend you use a staging date calculator which has been created by the government pension regulator and allows businesses to check if the new law applies to them and when they will be enrolled.