Workplace Pensions – affecting SMEs
You may have come across the phrase auto enrolment – Workplace Pensions a few times in recent years. By law, an employer must enrol eligible employees into a workplace pension scheme and contribute towards it. Auto enrolment started in October 2012 applying initially to large organisations and filtering down to SMEs across a five year period.
We are now finding that Auto enrolment is starting to affect our SME clients and many have already received communications from The Pensions Regulator regarding their staging date. It is important that you read these letters and act accordingly.
It is the responsibility of each employer to ensure they comply with the new regulations and offer a pension scheme to employees. The employer will be required by law to contribute up to 3% of each employee’s eligible earnings which means that the scheme will have an effect on the business and costs. Even if an employer already operates a pension scheme, the scheme must be checked to ensure it complies with the new legislation and that arrangements are made to ensure that all eligible employees are automatically enrolled.
Those employers who don’t comply with the legislation will be subject to an investigation and fixed fines of £400 and also the possibility of daily fines ranging from £50 up to £10,000.
We strongly advise you not to delay arranging Auto enrolment – Workplace Pensions. Start making plans today.
If you are an employer and don’t already know your staging date, you can find out by clicking here – you will need your payroll Employer Reference Number.
It is strongly recommended that you start planning 12 months before you stage for auto enrolment and our wealth management team is on hand to assist. Our service is designed to provide you with in-depth information to enable you to understand how you can manage your current pension scheme or set up a qualifying pension scheme in the lead up to auto enrolment.
For more information or to arrange a meeting with one of their qualified advisers, please get in touch via your usual BKL contact or our enquiry form.
