If you are a business owner employing workers for the first time since 1 October 2017. The pensions auto-enrolment scheme is something you want to pay close attention to. Auto-enrolment (AE) for workplace pensions, in a process that started in 2012. This now applies to nearly every employer who had workers on their payroll before 1 October 2017.
Since 1 October 2017, once you employ a worker, you automatically assume AE duties. Your employees must be auto-enrolled in the workplace pension if they meet the following conditions.
The following are other conditions that exclude you from auto-enrolment.
But there is a catch. If you are currently exempted from auto-enrolment by this director-only clause but on or after 1 October 2017, you employ a worker, your company will be viewed as ‘new employer’ and therefore have new auto-enrolment duties.
The deadline to issue to correct letters to your employees and set up a workplace pension for them. If needed is five months, starting from when you auto-enrolment duties begin (the staging date).
You can be fined by The Pension Regulator for missing deadlines and although there is usually some leniency. These rules are being monitored with more strictness.
Contact us if you need any professional guidance or further clarification about of auto-enrolment in workplace pensions.
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