Don’t get left behind!
Over the next few years nearly a million businesses will be compelled to offer their staff a work place pension.
Because of the scale of the operation support through this process will be at a significant premium. Delaying preparation therefore leaves you open to significant risks including:
Not being able to source sufficient support and advice
Failing to properly evaluate employee eligibility
Non-compliance with staging deadlines (which could result in significant fines)
Major business disruption as manpower and resources are thrown at complying with obligation
Fines and potential custodial sanctions imposed by The Pensions Regulator
Research suggests that the vast majority of small businesses and accountants are not aware of the obligations facing them.
- Every employer in the UK will be affected by auto enrolment Even those paying a salary to a spouse will need to consider their situation.
- Employers with NO-ONE in the pension scheme do not escape They will still need to perform many administrative tasks each and every pay reference period.
- Employers will need to keep records for up to 6 years Again irrespective if no-one enrols in the pension scheme.
- Employers have a pre-set deadline to get ready by The deadline dates (staging dates) are based upon number of employees in April 2012.
- Every employer must already be compliant by their staging date This can include having in place a fully compliant pension scheme, ready to accept employees.
- There is a lot of work required prior to staging dates Preparing for staging will require a significant amount of time and resource and it is recommended that employers begin at least 6 to 9 months prior to their staging date.
- Staging preparation will affect the employer for years to come Employers should start well in advance of their staging date, to make well informed decisions, as their decisions and actions will have lasting impact on the business and employees.
- Hefty fines or even prison could be a consequence The pensions regulator can inspect any aspect of the pension compliance process. It can fine and even imprison directors in cases of persistent non-compliance.
Drummond Laurie can help, from the initial registration, to setting up your scheme, working with providers and then the on-going assessments, compliance and linking it all to payroll.
Don’t delay, for an informal discussion please call Gillian Niven on 01324 441280 or email gillian.niven@drummondlaurie.co.uk