Since 1 October 2017, a new employer has Auto Enrolment duties from the date they first start to employ a worker. If one or more employees are aged between 22 and the state pension age, and earn more than £10,000 per year; £833 per monthly; or £192 per week, they are usually “eligible” employees who must be auto-enrolled in a workplace pension scheme, unless they notify their employer they wish to opt out.
Even if none of your employees meet the criteria to be eligible, you as the employer may still have Auto Enrolment duties. For example, the employees may have the right to join or opt in to a workplace pension scheme, which means you as the employer will be required to set this up.
If you are a director only company and have no other employees (or just other family members), you will not need Auto Enrolment for the directors. This is also the case if the company has more than one director, but none or just one of them has a contract of employment. If as an employer you receive a letter from TPR stating that your company has Auto Enrolment duties, notify the TPR online that you do not have any qualifying workers.
Setting up deadline
From the date the Auto Enrolment responsibilities start (the staging date) the employer has five months in which to issue the appropriate letters to it’s employees and, if required, have a workplace pension available to them.
TPR can fine the employer for being late, and while it allows leeway, it’s now taking a tougher line.
To discuss how Auto Enrolment impacts your business please contact our Payroll team.