Understanding your ongoing auto enrolment duties as an employer
Many small businesses have already auto enrolled their employees on a government-backed pension scheme, however, this isn’t where the story ends. As an employer, you still have ongoing responsibilities and duties.
Here at BrightHR, we’re focused on helping small business to manage their staff effectively. Over the last few years pensions has become more of a pressing issue for businesses, especially around the issue of auto enrolment and employers must provide a workplace pension by 2018.
That’s why we have teamed up with the leading provider of auto enrolment services in the UK, Smart Pension, to offer our customers a full solution to their people management needs.
Whilst many small businesses have already auto enrolled all their employees on a government-backed pension scheme, this isn’t where the story ends. As an employer, you still have ongoing responsibilities and duties.
With that in mind, we take a look at the ongoing tasks you need to complete in order to comply with the legislation.
All details relating to the employee and their pension must be carefully recorded and stored by the employer. These records should include auto enrolment details, contact details, records of when contributions were paid, who the pension provider is, registry numbers, opt in requests and opt out requests. Some of these must be stored for the lifetime of the pension, whereas others may be stored for as little as four years. Smart Pension provides a secure place to store all this important information.
Every new employee should be assessed and you’ll have to reassess your employees each pay period to determine how changes to the employee’s age and earnings impact their pension. If an employee's qualifying earnings increase or they turn 22, they may become an ‘eligible jobholder’, which would see them being auto enrolled into a pension scheme.
Enrolling staff after the staging date
All new staff, and those staff who become eligible jobholders, will have to be sent a letter explaining how auto enrolment will work and how it will affect them. It’s also worth remembering that employees have the right to opt out of the scheme within the opt out period, all of which is made simple by the Smart Pension system. Smart Pension also has extensive employee education material including a free customisable auto enrolment poster & video generator.
Fines for non-compliance
The responsibility for auto enrolment sits firmly with you as an employer. HR software, payroll software, and pension software are available to make the task of managing auto enrolment much more straightforward, but ultimately it’s up to you to make sure you are compliant.
Those businesses who fail to comply with the mandatory duties associated with auto enrolment legislation will face large fines from the Pension Regulator. In 2017 the Pensions Regulator has already issued fines of up to £40,000 against noncompliant businesses.
About Smart Pension
Smart Pension is a Trusted Partner of BrightHR. Their services are free for employers with no hidden transaction fees. The Smart platform enables you to assess your staff, generate letters, delegate tasks and much more, all in a few minutes.
You can rest assured your team’s pension is being well looked after. Smart Pension only invest their pension fund in blue chip providers, such as Legal & General, are Master Trust Assurance Framework (MAF) accredited and have a 5-star rating from Defaqto.
To get started, please visit Smart Pension today