We would now hope that the majority of employers are aware that the law on workplace pensions has changed. Under the Pensions Act 2008, every employer in the UK (even if you just employ 1 member of staff) must put eligible employees into a pension scheme and contribute towards the pension. This is called ‘Automatic Enrolment’. (more…)
For the first time since the beginning of the government auto-enrolment initiative, three employers have been issued with penalty fines for non-compliance by The Pensions Regulator (TPR). The three firms that have been hit with penalties are amongst 163 firms that have been issued with notices by TPR between July and September 2014.
Over 33,000 firms have begun the auto-enrolment process so far, with an estimated 1.25 million due to stage over the next 3 years. The latest penalties are just the beginning. Despite the message to prepare early being hammered forward, TPR expect to see a number of employers failing to prepare themselves, either leaving it too late or simply failing to comply at all.
Every employer has a duty to enrol their employees into a pension scheme and contribute towards it. In preparing for this new law, there are a number of steps organisations can take to ensure a smooth transition.
Auto-enrolment is the biggest single change to the pension industry in decades.
Introduced as part of the government’s workplace pensions reform in 2012 the legislation is already being rolled to all businesses across the UK.
Download a copy of our ‘Preparing for Auto-enrolment’ guide which will provide you with information on what employers must do to implement auto-enrolment.
Getting auto-enrolment right is vital. Please contact our Wealth Management team to discuss auto-enrolment and your specific business needs.
With the implementation of RTI and now the requirements of Auto-enrolment, employers have had a very busy time ensuring they comply with new rules and regulations. Sarah Curzon looks at the specific payroll requirements of Auto-enrolment and the services that MHA Broomfield Alexander can offer your business to ensure you comply:
For more information on any of the points raised in the above podcast, or further details on the payroll services we offer to businesses, please contact Sarah Curzon by email or phone on 01792 790444
When I first started working in tax payroll processes were primarily a means to pay staff members, with some reporting to HMRC required at the end of the tax year. Companies would often regard their payroll tax compliance as something which could be treated with a mild lack of care because the year-end reconciliation processes would allow any mistakes or underpayments to be corrected in a catch up process. Payroll taxes were seen as an easy way for companies to manage their cashflows by underpaying during the year and catching up at the end of the tax year.
Over the last few years the emphasis on the importance of payroll compliance has changed substantially and there have also been penalties introduced for getting payroll compliance wrong during the year. An increasing number of responsibilities have also been placed on the payroll provider or team by Government regulation.
What is Auto Enrolment?
From October 2012, the Government has introduced new legal duties which require all employers to enrol their workers into a qualifying workplace pension scheme. These duties are being enforced over a six year period, with larger employers staging first. The Pensions’ Regulator will be contacting employers with information on when they need to start complying with the new legislation, so it is vital that employers are familiar with auto enrolment and what is required of them.
What Sage is doing
Sage has been working with The Pensions’ Regulator to ensure their Payroll software is ready for Auto Enrolment.