Pension Auto Enrolment
PENSIONS
LET US TAKE CARE OF YOUR AUTO ENROLMENT HEADACHES
All companies now have a legal obligation to provide a pension plan for all employees. Every employer MUST enrol workers into
a workplace pension scheme if their staff are:
Aged between 22 and the State Pension age
Earn more than £10,000 a year
Work in the UK
The Cost Of Auto Enrolment For Workplace Pension Schemes is as Follows:
Employee
Up to the
05/04/18
Then from 06/04/18
– 05/04/19
06/04/19
onwards
Total Cost
1% 2% (including 1% staff
contribution)
2% 5% (including 3% staff
contribution)
3% 8% (including 5% staff
contribution)
Auto Enrolment is Important Unless:
You are a sole director, with no staff There are a number of directors without employment contracts The company has ceased trading,
gone into liquidation or been dissolved Regardless, a declaration must be completed and submitted to the Pension Regulator whether you decide to opt in or opt out.
The Cost of Not Complying or Failing To Meet The Deadlines is:
- A fixed penalty notice will be issued if you do not comply with statutory notices, or if there is sufficient evidence of a breach of the law.
This is fixed at £400. - Penalties ranging from a prescribed daily rate of £50 to £10,000 depending on the number of staff.
- A civil penalty for cases where you fail to pay contributions due. This is a financial penalty of up to £5,000 for individuals and up to £50,000
for organisations. - Where employers fail to comply with a compliance notice or there is evidence of a breach, the regulator can issue a prohibited recruitment
conduct penalty notice. This penalty has a prescribed rate of £1,000 to £5,000 depending
on the number of staff the employer has.
