Cloud Bookkeeper are offering the Automatic Enrolment service, by 2017, all businesses- including small to medium size enterprises (SME’s) -will need to have enrolled their employees into a pension scheme.
“Employers who don’t set up their scheme on time risk getting a substantial fine, ranging from £50 to £2,500 per day”
so what is automatic enrolment
Automatic enrolment is a Government initiative to help more people save for later life through a pension scheme at work. Under the Pensions acts of 2008 & 2011 workplace pension’s law has changed and now every employer in the UK will be required to help more of their workers save for retirement.
- Automatic enrolment makes it compulsory for employers to offer eligible workers a workplace pension
- The employer must automatically enrol every eligible worker into the scheme
- Failure to comply with the legislation could incur severe penalties and fines
- The employer must make a minimum contribution to the scheme
In some instances the staging date will still seem like some time away but employers need to focus on these now and without delay, to ensure they are able to meet their auto enrolment responsibilities, avoid possible penalties, plan appropriately and to allow time for the provider to set everything up. Besides knowing when their staging date is, employers also need to review any existing pension arrangements as it is unlikely they will comply with the new requirements.
Don’t Panic -get in touch and see how we can help.