Auto Enrolment Workplace Pensions – everything you need to know as an employer

The Government estimates that about seven million people are currently not saving enough for their retirement, and as a result is putting the onus on employers to help encourage their employees to save. Between 2012 and 2018 all employers will have to automatically enrol all eligible employees in a qualifying pension scheme and make contributions for them. From 2018 any employer who has any employees has duties under the Auto Enrolment rules.

An Employer’s responsibilities for Enrolment Compliance are:

  • Issue employee communications prior to staging date or as soon as their duties apply (new companies / newly eligible employees)
  • Register a “qualifying scheme” with Pension Regulator
  • Appoint a contact with the Pensions Regulator
  • Communicate details to all employees – including those not eligible
  • Enrol all “eligible jobholders”
  • Operate an “opt out” process
  • Enrol any other jobholders that chose to opt in
  • Complete the declaration of compliance within 5 months of staging date or within 5 months of their duties date.
  • Every 3 years re-enrol any workers that had previously opted out
  • Retain records
  • Pay required minimum employer pension contributions
  • Communicate details of any postponement period

Directors Only

Completion of Director Only declaration with the Pensions Regulator online to declare that you have no employees.


Non- Eligible Employees

Statutory duties apply

Cost of Non-Compliance?

Investigation from the Pensions Regulator leading to fines dependent on size of your company and length of time in breach of rules:


Stage 1 – Compliance unpaid statutory notice

Stage 2 – £400 fixed penalty

Stage 3 – Escalating daily fines dependent on size of workforce (5-49 employees £500 per day /

50-249 employees £2500 per day)


How we can help

We at Premier Tax do not offer any form of pensions advice. We work closely with an Independent Adviser to assist us to ensure that all of our clients are compliant. They will assess your workforce and explain key areas of the legislation producing a bespoke report for your business with a timeline of deadlines to meet. A costing analysis of the 4 various pensionable pay options will be provided to help you decide on most appropriate basis to be used. After reviewing the report and with your agreement they will then install a Workplace scheme and liaise with our payroll department to ensure ongoing pension payments and future member communications are processed correctly.

Please get in touch on 01782 479699 and we will be happy to help you.

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