What is auto enrolment?
This is the name given to the Government initiative to implement and run a workplace pension for all employees. It was introduced by central government because as many as 7 million people are under-saving for their retirement, people are living longer, are healthier and this is going to create a funding crisis.
Auto enrolment is enshrined in legislation and imposes upon employers a duty to:
- Automatically enrol all eligible employees
- Communicate with employees in a timely and appropriate manner
- Allow non-eligible jobholders to opt in
- Manage opt outs
- Automatically re-enrol eligible jobholders
- Complete and submit declarations of compliance
- Keep records
- Maintain payments of contributions
- Not induce workers to opt out
- Not indicate to a potential jobholder their decision will affect the recruitment process
In short, auto enrolment is another administrative burden and cost on businesses albeit with the best intentions.
Do you have the time or inclination to carry out this work? It must be carried out or there are potential criminal offences.
Do you know your staging date? This is the date by which all your systems for auto enrolment need to be in place. You can use http://www.thepensionsregulator.gov.uk/employers/staging-date.aspx to find your staging date. You will need your paye reference.
If you are too busy running your business then talk to Nathans and its associates about how to outsource this facet of your business.