Auto Enrolment Accounting Service
What is Auto Enrolment?
You may or may not be aware that the Government has introduced auto enrolment to help more people save for their future. This means that employers will need to automatically enrol some workers into a workplace pension plan and give other workers the option to join. We want to help you understand and prepare for the changes you will have to make.
Why is Auto Enrolment important?
Your employer duties will depend on the types of workers you employ, their age and the amount they earn. You will also be responsible for the ongoing maintenance of the scheme and will be obliged to keep certain records, all of which we at H&H Accountants can help you with.
The employer duties are not optional and non-compliance could lead to substantial fines. For large companies the process has already begun and it is now getting to a point where all employers need to consider the responsibilities of auto enrolment.
What are my duties as an Employer?
Employer duties began being introduced in stages from October 2012. The date your employer duties first apply is known as your ‘staging date’ and is based on the number of people in your largest Pay As You Earn (PAYE) scheme on 1 April 2012.
Your employer duties will depend on the types of worker you employ. You’ll need to automatically enrol some workers into a pension scheme and arrange membership for others. You’re also responsible for the ongoing maintenance of the scheme and have an obligation to keep certain records.
How will it affect my workforce?
You’ll need to assess your workforce to determine whether they’re treated as a ‘worker’. There are three different categories of worker, determined by their age and how much they earn.
What is the effect on pension schemes?
You must complete a declaration of compliance to show that you have an auto enrolment scheme in place by at least five months after your staging date. You’ll also have to re-declare compliance roughly every three years. The good news is, if you have an existing pension scheme, you can use this to meet your employer duties as long as it meets certain criteria.
What happens if I don’t do anything?
The employer duties are not optional. TPR will be responsible for ensuring that you comply with your employer duties. Although TPR’s approach will be to educate and encourage compliance, you’ll face substantial fines or even imprisonment if you don’t comply.
We can help your business with its Auto Enrolment
At H&H Accountants we recognise that auto enrolment poses new challenges to your business, involving new processes, record keeping and reporting requirements to comply with your new duties. With forward planning and communication, together we can ensure this has as little impact on your business as possible.
At H&H Accountants we offer a variation of accounting services that enable us to support your business every step of the way. If you have any questions regarding auto enrolment please contact us by clicking the act now button below.