The Pension Regulator will be writing to all small and micro employers (SMEs) in the imminent future to introduce their businesses to workplace pensions.
Every business in the UK will be legally required to provide a pension scheme for all employees and make employer contributions toward their pension.
To discover the staging date for your business before the Pension Regulator’s letter arrives go to http://www.thepensionsregulator.gov.uk/ and input your PAYE reference number or give us a call we will check your staging date for free.
Know what to do and when to do it, there are 11 main steps to Auto Enrolment;
- Know your staging date
- Decide on a point of contact within your establishment
- Devise a plan
- Look at each individual employee and decide who qualifies to enrol
- Choose a payroll provider or check your software is compatible with auto enrolment
- Choose a pension scheme
- Automatically enrol your employees
- Correspond with your employees without discrimination to age or employment status
- Send your declaration of compliance to the Pension Regulator
- Keep accurate and compliant records
- Fulfil ongoing employer responsibilities
Steps 1-3 should be done 12 months before staging
Steps 4 to 6 must be done 9 months before staging
Step 7 staging date is here enrol your employees
Step 8 up to 6 weeks from staging write to all your employees letting them know how auto enrolment effects them
Step 9 you have up to 5 months from staging to complete your declaration of compliance. This will confirm to the Pension Regulator that you have fulfilled your legal duties as an employer.
Steps 10 and 11 are ongoing tasks which will include checking weekly to see if any employees who were not eligible for auto enrolment have become eligible or if any eligible members decide to opt out. If an employ wishes to opt out then you must ensure no further contributions are taken and see if a refund is due.
This sounds confusing and costly and indeed it can be both!
MG Payroll Services has looked extensively into the options for SMEs and have several solutions on offer.