I imagine that all of us will have seen the TV ad in which a giant hairy monster wanders around unnoticed. The point of the ad is to alert employers to their duties under auto-enrolment, but it would seem that many employers have missed the point. Recent figures published by The Pensions Regulator show that, for the quarter ended 30 June 2016, 861 employers were fined £400 each for failing to declare their compliance with the rules. It would appear that the monster is getting nasty.
The law requires that employers must put certain staff into a pension scheme, and contribute to it. It may be that an employer does not need to provide a pension. However, this still leaves them with some responsibilities under the rules. For example, all employers must declare their compliance with the rules within 5 month of their staging date. Failure to do this may mean a £400 penalty, as many employers have found to their cost already.
Clearly, the monster means business and if you haven’t taken notice before, now is the time to take a closer look at auto-enrolment.
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