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Are you a new Employer paying someone for the first time?

Workplace Pensions and Auto-Enrolment

In case you were not aware, you have new employer duties if you are paying someone new for the first time. From your employee start date you must comply with the new Workplace Pensions Legislation or pay penalties.

While you have New Employer Duties you may not have to initially arrange for a pension scheme unless one or more of workers meets all of the qualifying criteria:

  • Earns over £10,000 a year
  • Are 22 years of age
  • Have not yet reached state pension age.

Your New Employer Duties

1. Communicate to your workforce:

If none of your workers meet all of the above criteria then you still have obligations or face penalties. Make sure that you issue statutory communications to all your workers who do not meet the qualifying criteria informing them that:

  • They will not be Auto-Enrolled in to a workplace pension scheme and why
  • How they can join your workplace pension scheme if they want to.

You can find a template of a statutory communication letter here.

2. Ensure that you REGISTER YOUR DECLARATION OF COMPLIANCE with The Pensions Regulator by completing your information on their website here.

IMPORTANT: Failure to make your declaration can incur a one-off penalty of £400 with further daily penalties starting at £50 a day for even the smallest employer.

How Mitchell Charlesworth can help

We will complete the Declaration of Compliance with The Pensions Regulator ahead of the Declaration deadline on your behalf for a fee.

REMEMBER: You must set up a workplace pension scheme if the following occurs:

If any of your workers ask to join the workplace pension scheme or if you have a new or an existing worker who suddenly meets the qualifying criteria by earning £192 in a week / £833 in a month and is aged 22 to state pension age.

If this happens then you must arrange for a Workplace Pension Scheme and begin to make contributions on each pay day.  We can help with that too.

Should you have any queries or would like further advice about meeting your Auto-Enrolment obligations, do not hesitate to contact Ashley Bellis or our other Auto-Enrolment specialists to the right of this page.