The Pensions Regulator issued the requirements for Auto-enrolment back in October 2012 with a phased approach but many businesses are still not aware of their responsibilities.
The latest research showed that 43% of small employers have still not consulted external advisers about automatic enrolment. While awareness of auto-enrolment had improved, companies were still unsure of how to fulfil their obligations.
Many were in need of practical assistance to complete the process. 66% of small employers and 65% of micro-employers said they needed more than just advice and were looking for advisers to help. 43% of employers could not recall receiving a letter and did not display an awareness that they must submit a declaration of compliance confirming completion within 5 months of their staging date. So what are the requirements?
- Every employer has a staging date. The staging date is based on the number of employees you have. You can find out your staging date using this link. You need to know your PAYE reference and the age and approximate earnings of each employee.
- If it’s easier you can decide to bring your staging date forward so it matches other processes or is aligned with the start of your financial year.
What you must do?
- You must complete a declaration of compliance to the Pensions Regulator within 5 months of your staging date.
- If you don’t fulfil your requirements you could receive a fixed penalty of £400. If action is still not taken at this point a further fine called an Escalating Penalty, the costs of which can be extensive.
|Number of people in PAYE scheme||Daily accrual rate|
|500 or more||£10,000|
- Employees can complain that they have not been offered a scheme
If you have any concerns about auto-enrolment, want to know your staging date or need help setting up a scheme please contact us for an initial review. We will then outline your options clearly for you so you can make an informed decision about your approach to Auto-enrolment.