Written by Holly McHugh, BrightPay Payroll Software: From 1 October 2017, all start-up businesses have a legal duty to place staff into a workplace pension as soon as they commence employment. Providing a workplace pension is just part of running a business. The instant pension duties correspond with the fifth anniversary of automatic enrolment.
Statistics show that since 2012, over 8.5 million more people have started to save money in their workplace pensions, while roughly 800,000 employers have met their auto enrolment duties.
On 29 September 2017, The Pensions Regulator (TPR) launched a guide for what you’ll need to do for automatic enrolment if you employ staff for the first time. This guide will help new businesses and give them all the information they need about what to do and when.
Darren Ryder, The Pension Regulator’s director for auto enrolment stated:
The start of instant pension duties for new businesses will continue the great strides automatic enrolment has made to reverse the downward trend in workplace saving.
Providing a workplace pension is now the business norm and staff expect to be saving into a pension as part and parcel of their employment.
Every employer who has successfully met their duties and done the right thing for their staff has contributed to the, success of automatic enrolment.”
According to recent research from The Pensions Regulator, employers continue to think that auto enrolment is good for their staff. This is a result of employer awareness and a better understanding of automatic enrolment. Most of those who work with employers, such as accountants and independent financial advisers, are aware that new businesses will have instant workplace pension duties.
Since 1 October 2017, new businesses are no longer given a staging date, to indicate when their automatic enrolment duties will start. Instead they have duties as soon as they employ someone for the first time. Before 1 October 2017, all employers were given a staging date, the last of which will be reached in February 2018.
Advisors are urged to visit The Pensions Regulator where they can keep up to date on the information they give to their clients, so they can successfully meet their auto enrolment duties.
Written by Holly McHugh, BrightPay Payroll Software. Exhibiting at Accountex 2018 on stand 430.