While auto-enrolment has been well publicised in the media, we have found that many people are not aware of the cost of implementing such a scheme, not to mention the penalties for non-compliance, which are:
Did you know?
- £400 fixed penalty;
- £50 - £10,000 per day for firms depending on the number of workers affected;
- 2 years imprisonment for wilful failure to comply.
What are the costs?
- It can take up to 6 months to prepare & set-up a compliant scheme for auto-enrolment.
- You must communicate with every member of staff advising them of how automatic enrolment affects them.
- There are 3 different classes of employees, all of which will create different responsibilities and different requirements in terms of how you need to communicate with them.
- You must register your auto-enrolment scheme with the Pensions Regulator.
How can we help?
- Auto-enrolment will have an inevitable increase in costs since you will be required to set-up and pay into your employees’ pension scheme.
- There are four different methods to establish the salary levels for the basis of the pension contributions. Which basis you choose can have a huge impact on the cost of providing the scheme. As an example, on a recent scheme with 100 employees, the cost of pension contributions ranged from £25,000 to £85,000 per annum.
- You can elect to have different arrangements for different groups of workers. This can also have a big impact on costs.
We can help identify the processes that you must comply with and provide you with a timeline by which these must be actioned.
We can review any existing arrangements, identify any changes needed to comply with the new rules and if you wish, we can also help with the implementation and the ongoing monitoring of the scheme to ensure that all of your employer duties are met.
In short we can ensure you are fully compliant with the rules, outline the cost implications of the different options and provide you with as much or as little support as you wish.
To speak with a member of our team directly please call our dedicated auto-enrolment email us at email@example.com.
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