Automatic enrolment: If you employ staff, then you will have duties
Automatic enrolment may be automatic for workers, but it is not automatic for employers. If you employ staff, then you will have automatic enrolment duties, even if you don’t have staff who must be put into a pension scheme.
Make sure you know what needs to be done, by when, and where to go for more information. The Pensions Regulator’s Duties Checker is a good place to start.
Automatic enrolment: Employing staff on irregular hours or incomes
Automatic enrolment duties apply to any staff that are aged 22 to state pension age and earn over £192 a week or £833 a month; these staff must be put into a pension scheme which you must contribute towards.
If you employ short-term, seasonal, temporary or other staff who are not on regular hours or incomes (eg fruit pickers, labourers, etc) but pay them through a payroll, then automatic enrolment duties will still apply.
To find out what duties apply to you, complete The Pensions Regulator’s Duties Checker.
Automatic enrolment: Don’t let your holiday plans risk a fine
If your declaration of compliance deadline is 31st August, you can avoid a fine by starting the declaration as soon as possible and ensuring that it’s completed on time. And don’t forget Monday 29th is a Bank Holiday…
It is important that you complete a declaration of compliance and submit it to The Pensions Regulator so that they know what actions have been taken to meet your duties. This needs to be done within 5 months of your staging date. If your business adviser is acting on your behalf on some of the tasks, then make sure you agree who will complete the declaration.
The Pensions Regulator produces a declaration checklist to help gather all the information needed to complete the declaration.
Automatic enrolment: Do you know which type of earnings qualify?
Qualifying earnings include wages, salary, fluctuating elements of pay, bonuses, and some statutory payments, such as maternity and sick pay. We recognise that not all pay elements fit neatly inside these headings, and a good rule of thumb is that if earnings are subject to National Insurance contributions, then they are likely to also qualify as earnings for automatic enrolment. Payroll software should help with this, and also where earnings fluctuate on a week-by-week or month-on-month basis.
For more information on which earnings quality for automatic enrolment, complete The Pensions Regulator’s Duties Checker.