The Pensions Regulator has started to issue penalties to employers who do not comply with their Auto Enrolment responsibilities.
It issued 166 penalty notices between October and December 2014 and also issued 1,139 warnings over the same period.
If you don’t set up a suitable auto enrolment pension scheme for your staff by your staging date and enrol them automatically you could face fines of between £50 and £10,000 per day, depending on the size of your workforce. Employers will receive an initial warning letter followed by a second warning and a fine of £400.Then a daily penalty rate is applied as follows:
|Number of Employees||Fine per day|
|1 – 4
|5 – 49
|50 – 249
|250 – 499
We’re advising our clients to get organised well before their staging date. Most companies in the one to 50 employees category will be staging during 2016 and 2017. Wise employers will not wait until the last minute to seek help and advice on how to ensure they meet their duties and avoid penalties!
As your payroll provider, we can set up your auto enrolment scheme for you and assess your staff each pay run. More information about our AE services can be found in our download section.