Auto-enrolment: Statutory duties for new employers from 1st October 2017

 

We are fast approaching January/February 2018 when the last employers with auto-enrolment staging dates have to comply with the legislation.

However, this is only the start.  If you are a business or an individual who becomes an employer for the first time on or after 1 October 2017, you will have legal duties for your employees immediately.

Some new employers may rely on their accountant to help them but it is a concern that almost half (49%) of accountants included in research by The Pensions Regulator didn’t know that new employers have automatic enrolment duties.

It is extremely important that you comply with your legal duties correctly and on time.  The fines for non-compliance are significant and in some cases can adversely affect a business’s credit rating.  Non-compliance or getting it wrong is a major business risk.

Your employer duties will apply from the first day the first member of staff starts working for you.  New employers from 01 October 2017 do not have staging dates, as their legal duties start straight away; this is known as their ‘duties start date’.

As a new employer you must comply with all the duties and requirements of automatic enrolment similar to employers who had staging dates, as follows:

  • assess your employees
  • identify who to auto-enrol
  • choose a pension scheme or schemes
  • communicate with employees with the statutory communications
  • register with The Pensions Regulator
  • make contributions
  • process any opt-out notices
  • process opt-in or joining requests
  • avoid inducements and prohibited activity
  • keep accurate records, and
  • provide your employees with information about the changes.

You must still comply with all the duties even if your employees are not automatically enrolled.

If you would like further details and how we can help you, please contact Dion Prideaux-Reynolds on 01635 551333.

To download our Employers Guide to Auto-enrolment, click here. You can download our Auto-enrolment Statutory Contributions Guide here.

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