Auto enrolment consultancy services
We help corporate clients to comply with the new Auto enrolment Company pension legislation - we provide consultancy services on assessing the workforce and regulatory reporting, as well advice on the most suitable pension scheme for their staff.
5 key questions you will ask along with our follow up answers;
1) What do I have to do about it?
2) When do I have to do something?
3) What are there implications if I do nothing?
4) How much will it cost my Company?
5) Where can I get help on all of this?
What do I have to do about it?
- Any UK firms with MORE than one eligible worker will have to automatically enrol them into a qualifying workplace pension scheme and pay in a contribution on their behalf.
- Re-assess any existing Company pension scheme to ensure it meets the new qualification criteria.
- Identify and establish all ‘eligible workers’ which can be a minefield to navigate and could include all types of worker from permanent staff through to sub contractors, schedule D and general casual workers.
- Start up, contribute to and maintain an eligible workplace pension scheme from the choices on the market.
- Keep records of all scheme and member activity both at set up stage and for compulsory annual reporting to the pension regulator.
When do I have to do something?
- Every firm has been allocated a staging date, by which time you must be registered. Firms with less than 50 eligible workers will have their staging date arriving imminently.
- You will need to start discussing your own firm’s requirements well in advance of your staging date, to allow time to consult on all the above requirements as well as forward budgeting and taking advice on and setting up the most appropriate pension scheme/s for your firm.
- We recommend that you begin the consultation process at least 6 months before your staging date.
- By advising us of your firms PAYE reference number, we can find out your Company’s exact staging date.
What are there implications if I do nothing?
- Penalty fines will be levied by the Pensions Regulator if employers are non compliant on their staging date, starting with a £400 on the spot fine, plus further fines of £50 per day per employee. To put this into context, a non compliant firm with 20 employees will face fines of £7,000 per week
- Fines levied like this could put your business in jeopardy.
- Criminal Prosecution
- 200 inspectors will be appointed to police this operation
How much will it cost my Company?
- The legislation will require firms to pay 3% of eligible workers salary into the pension scheme. For a firm with say 20 eligible workers on an average £20,000 p/a salary, the cost of contributions will be in the region of £12,000 per annum.
- There will be instances where the employer contributions can start lower and then be increased up to 3% over an agreed period of time
- There will be costs for the resource you will have to employ to carry out all the necessary work as described earlier, whether this be in house or by outsourcing to a specialist firm of advisers.
Where can I get help on all of this?
At Financial Resolutions Ltd we can assist by providing the full range of services.