Auto-enrolment – Don’t be an ostrichPosted 2015 by admin
Already there are a number of reported cases of businesses who have failed to sign staff up to a workplace pension scheme being hit with escalating fines by the Pensions regulator.
Under current workplace pension rules, all employers with at least one member of staff have to undertake certain duties, including enrolling those who are eligible into a workplace pension scheme and contributing towards it.
Under this process, known as auto-enrolment, businesses must meet certain requirements by their set staging date, which is based upon the number of people they employ.
Those that miss their staging date are initially sent a statutory notice reminding them to comply however, those who persistently and deliberately refuse to comply, or who breach workplace pension rules, could face a fixed penalty notice of £400.
Failure to pay this fixed penalty notice could lead to a series of escalating fines, with a prescribed daily rate of £50 to £10,000, depending on the number of staff the business employs.
Firms need to take penalty notices seriously as the Pensions Regulator has confirmed that they will take civil action through the courts to recover penalties and will prosecute employers who deliberately and wilfully fail to comply with their duties.
Make sure you seek proper professional advice to ensure that your affairs are in order.