All businesses have Employer Workplace Pension Duties from the moment they pay an employee for the first time. From the employee’s start date employers must comply with the Workplace Pensions legislation or pay penalties.
- One-off fixed penalty of £400
- Escalating penalties of £50 to £10,000 a day.
Therefore, it’s worth ensuring that businesses remain compliant with the legislation.
Mitchell Charlesworth Can Help
While a new business may have Pension Duties, they may not have to initially arrange for a pension scheme unless one or more of workers meets all the qualifying criteria:
- Earns over £833 a month or £192 a week
- Are 22 years of age or over
- Have not yet reached state pension age.
If none of the workers meet all the above criteria, then an employer still has obligations or face penalties. They should issue statutory communications to all 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 the workplace pension scheme if they want to.
- Employers can find a template of a statutory communication letter here.
Once completed the new employer must register their Declaration of Compliance with The Pensions Regulator by completing reporting their information on the government website here.
An employer must set up a workplace pension scheme after taking a new employee the following occurs
- a worker asks to join the workplace pension scheme or
- a new or an existing worker who 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 an employer must arrange for a Workplace Pension Scheme and begin to make contributions on each pay day.
Mitchell Charlesworth Payroll Services has the Complete Solution
Where Mitchell Charlesworth is engaged to run a business’s payroll, we can provide further support with the following:
- Arrange a Qualifying Workplace Pension Scheme
- Issue pension communications direct to workers as they fall due
- Upload workers details to the Workplace Pension scheme
- Calculate and pay contribution over to the Workplace Pension scheme
- Manage Opt-Out collected from the Workplace Pension scheme
- Complete the Declaration of Compliance with The Pensions Regulator
- Provide guidance around Director exemptions
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.