Posted by Michael Foudy Last updated 28th March 2017 reading time
As business owners, we share similar dreams, and one of those I imagine we share is to one day bask in the glory of retirement. Retirement for us and our employees may seem a long way off, especially with the state pension age for both men and women on the rise. However, it’s never too early to start saving and what better way to do this than with a work place pension, and do we have a choice?
Under law introduced in 2012 all employers must offer this service and auto-enrol eligible employees, work place pensions are the responsibility of the business owner(s) and your staging date may sneak up on you. Work place pensions and Auto-enrolment has been a phased process staring with larger organisations but by 2018 this will apply to all businesses and according estimates from The Pension Regulator (TPR) in 2017 up to 500,000 businesses will commence with full duties.
Know your staging date
Set up an action plan
Identify which employees are affected
Review the financial impact on your business – administration cost and employer cost
Identify, review and choose a pension scheme
Sign up to the direct debit with the pension provider.
Issue TPR compliant communication with employees
Ensure your payroll software is AE ready
Assess each employee each month
Update pension provider with deductions each month
Complete Declaration of Compliance
Please don’t leave it too late, this process takes time to ensure you get the very best outcome for you, your business and your employees …with fines starting from £50 per day you can’t afford to sit idle.
Swindon Football Club have already fallen foul of this and received a 22k fine
Call now for your free auto-enrolment consultation. Furthermore, as the business owner, this may also be the ideal time to review your existing pension arrangements – call us now to find out how we can help you with this and explain the tax benefits to you.