Businesses with fewer than 30 employees across Gloucestershire met their staging dates for auto enrolment workplace pensions last year.
During the next three years, the numbers of SMEs meeting their staging dates will grow, reaching a rate of more than 100,000 businesses in the UK per month at the beginning of 2017.
We at ESB Accountancy have set up a service specifically designed to meet the needs of small businesses wanting to become legally compliant with the new requirements.
And in the six months since June, we have come across dozens of businesses which have struggled to make sense of the new regulations.
Fines for non compliance with auto enrolment start with a ticket from the Pensions Regulator of £400, followed by compound fines which can cost about £500 per day for a small business.
Given the complexity of the regulations, trying to organise auto-enrolment without specialist knowledge of the subject could be a mistake.
We came across one example of a small local firm who had set up their own pension scheme and delayed their staging date for the permissible three months, but had underestimated the difficulties with the ensuing payroll requirements.
The HMRC’s PAYE basic payroll tool does not cope with auto enrolment assessments, and it doesn’t provide any of the statutory letters that must be sent to employees either.
The key problem is that if you haven’t issued statutory postponement letters to your employees within six weeks of your staging date, then legally you haven’t postponed auto-enrolment and contributions are due with effect from your staging date.
Statutory postponement letters will need to be sent to employees to let them know that enrolment is being postponed.
You need to give your payroll team time to familiarise themselves with the process, as auto enrolment is as much of a payroll issue as it is a pensions issue, with all of the ongoing communication and administration taking place through the payroll.
As we at ESB Accountancy can also handle your payroll we can provide a “one stop shop” seamless service to you for your business.
So if you needing help with your business’s auto enrolment pension and payroll service – you can either ring us now on 01242 583001 – or email us on email@example.com or click the Contact Us button or please fill the form at the bottom of the contact us page.