The rules are simple. As soon as any business hires a member of staff and pays them via PAYE, they will have duties under the Pensions Act 2008, regardless of how much they earn. This guide will show you what you need to do when presented with different employer situations.
If the business employs sole directors, please click this link to give you more guidance from the Pensions Regulator.
New Members Of Staff with no-one that earns over £10,000.00 per year
There are still duties that need to be completed. WPD has a service at a reduced fee which will enable us to complete the legal duties on their behalf. Please contact us on 0113 457 4563 or e-mail email@example.com for more information.
New Members Of Staff with at least one member of staff that earns OVER £10,000.00 per year
Duties start as soon as that member of staff is employed. This is called the Duties Start Date. Employer must act immediately.
There is a postponement period for the start of contributions. This can only be selected within 6 WEEKS of the employers “Duties Start Date”. A significant cost saving measure.
Contact WPD for a quote on 0113 457 4563 or e-mail firstname.lastname@example.org for more information.
FORMER DIRECTOR ONLY COMPANIES NOW WITH EMPLOYEES
Ongoing Compliance is a legal obligation for every employer. As soon as an employers circumstances change, they must take action.
Unfortunately, employers are not realising this and relying on their payroll company or accountant to let them know if they have any obligations. If an employer fails to enrol an eligible (earns £10000 a year or more) member of staff into a pension scheme, they MUST pay backdated employer and employee contributions, even if they choose to opt out (a refund would be made the following month). This is can be a hugely significant amount of money.
WPD offers a free Pension Audit Service for accountants (where you manage payroll) so we can ensure your employers are meeting their legal responsibilities.
To understand the risks of non-compliance, please click here
Speak to WPD about any employers that fall into this category and we will see how we can help. It is against the law for employers not to take action when they have new members of staff.
If you have an employer that completed the Auto Enrolment legislation themselves but is now struggling, WPD can help take over their existing arrangement and complete an audit to bring them up to date and manage their ongoing responsibilities.
Speak to WPD on 0113 457 4563 to discuss further.