The latest Compliance and Enforcement bulletin released by The Pensions Regulator has highlighted their concerns with the number of employers who are ignoring workplace pension duties, putting them at risk of being fined and prosecuted for failure to comply.
Their latest data shows that their use of fixed penalty notices (FPNs) and escalating penalty notices (EPNs) has increased. The Pensions Regulator now publishes the details of those who have paid their EPNs but remain non-compliant on their website. They are also publishing the details of those who failed to pay their EPN and have been made subject to a court order. This public reporting of businesses failing to pay their notices is a huge incentive for all advisors to stay on top of their workplace pension duties.
What is automatic enrolment?
Every employer with at least one member of staff has a duty to enrol those who are eligible into a workplace pension scheme and contributing towards it. It is automatic for staff but not for employers.
What do Business Advisers need to do?
An adviser’s role depends on the type of adviser they are. They may be expected to simply provide advice or may offer a full automatic enrolment service. When it comes to legal responsibility for automatic enrolment, the legalities lie with employers. However it is likely that they will turn to Business Advisers for help. An adviser who is nominated as a client’s additional contact to The Pensions Regulator will receive regular emails with the latest information and deadlines required of your contact.
Who has to be compliant?
Accountants and Business Advisers should encourage all clients, including smaller employers and non-payroll, to comply with their new employer duties. If a client has at least one member of staff who is paid via a PAYE scheme, automatic enrolment duties apply. There is a duties checker tool available for clients to work out how automatic enrolment applies to them, available here.
What needs to be done to set up automatic enrolment?
- 12 months before staging : checking your client’s staging date, being a point of contact and checking who to enrol.
- 6 months before staging : working out your client’s costs, checking records and payroll processes, choosing a pension scheme.
- On your client’s staging date : assessing and enrolling staff, writing to your client’s staff, knowing your client’s ongoing duties.
- After your client’s staging date : completing the declaration of compliance.
In a nutshell
A Business Adviser can offer as much or as little support for clients organising their workplace pension scheme enrolment. However it is very likely that they will be asked to provide help and some services. It is important to keep up to date with The Pensions Regulator deadlines and ensure you are able to offer advice regarding automatic enrolment.
For more information, visit http://79.170.40.162/enlightenhr.com or contact Alison Benney:
alison@enlightenhr.com
Tel: 01803 469466 Mobile: 07967221595