AUTO ENROLMENT DON'T GET FINED

Auto enrolment – if you employ staff you can’t ignore it or you will face daily fines

There is nothing automatic about auto enrolment. You, the employer are going to have to make it happen. If you have just one member of staff you will need to know what to do or you could face daily fines, which include weekends.

Auto enrolment is far more than just pensions – 50% is related to employment law.

There are a number of things you need to do, so create an action plan. A small business needs around 6 months to prepare:-

1. Staging date

You need to find out the staging date for your particular business. Go to www.thepensionsregulator.gov.uk/employers/staging-date.aspx and enter your PAYE reference number. This will give you your staging date.

2. Define your workers

Do you know who are your workers, contractors, employees etc.

Contractors - not on the payroll, invoice as a separate company, use their own equipment and sta

ionery and generally work from their own premises. They would not be eligible to join the scheme.

Personal Service worker – maybe work regularly for the company and invoice. They need to be included in the scheme.

Employees – those who are on the payroll and have contracts of employment. They need to join the scheme.

3. Update your Employment Contracts

They will need to be updated to take into account auto enrolment. Need to remove any mention of stakeholder pensions. This is also a good opportunity to update other items in your contracts. Though you need to be careful when you do this.

4. Phasing of contributions

Contributions will start at 1% from employee and 1% from employer

In 2017 this will increase to 3% from the employee and 2% from the employer

In 2018 the employers’ contribution will increase to 5% and the employees’ contribution will remain at 3%.

For further advice contact Nichola@coulthardhr.co.uk 07946 541606

www.coulthardhr.com

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