Auto Enrolment is the name for new pension legislation that requires all employers to set up a workplace pension and enrol all eligible employees into this scheme. Some workers will be obliged to contribute to the scheme at first, others will have the right to join and if they do, the employer has to contribute as well. Unless you are a sole trader or a single director company without any staff this legislation is likely to affect your business.
Each business has what is called a ‘Staging Date’ and this is the date when it has to have a compliant pension scheme in place. Failure to have done so will result in swingeing fines. Even if staff members don’t want a pension, many of them will have to be enrolled and can then opt out, although employers are prohibited from encouraging them to do this. Eligible staff are those aged between 22 and state pension age, earning over £10,000 per year working in the UK.
Just becoming compliant is a lengthy process (there are almost 100 steps you need to take!) so don’t leave it too late if you want to avoid being fined. Our benefit provider can help you set up your AE process, enrol staff, find a suitable pension, provide software that will communicate between your chosen pension and your payroll and then provide call centre advice when your administration staff have any questions. All you have to do is upload a CSV file of your payroll data!
Fines for non-compliance are given daily and range from £50 per day for businesses 1-4 employees and £500 per day for businesses between 5-249 employees – can you afford not to comply?
The YBC Pensions & Auto Enrolment benefit enables you to get your company scheme up and running in a fraction of the time and cost that most other suppliers offer.Join now