Is your business prepared for the changes that are coming into force with the new Automatic Enrolment regulations? Your choices around employer contributions can make a significant impact on the bottom line cost to your business, so it pays to get the advice you need early to plan and manage your employee costs.
In our recent Auto Enrolment seminar with Creative Auto Enrollment, we looked at some the key points for small business owners and answered individual questions to help our clients navigate these potentially stormy waters.
Your three key things to consider are: Costs, Process and Employees.
As an employer, you have some choices about the salary basis for your pension scheme and what you opt for may significantly affect the overall cost to your business.
Also don’t forget there are hefty fines for non compliance, starting with a flat fine of £400 for late compliance and going up to daily rate penalties.
Your staging date is decided by HMRC and it becomes a binding deadline. Your to do list will include:
choosing a pension provider, communicating with employees, employee assessments, Employee registration, payroll updates & ongoing record keeping, reporting back to HMRC … and more!
Don’t forget your employees will have questions about their pensions. If they don’t opt out then enrolment onto the pension scheme will require them to make a contribution and affect their take home pay.
You’ll need to send them specific information at different points in the process. Be prepared for the inevitable questions that ask exactly what you’ve already explained in the formal letter that no-one read properly …
I think I need help: what do I do?
Chatting with your payroll provider about this before it all happens is essential to ensure you have the support you need. If, as a business owner, you aren’t a pensions expert don’t panic! There are sources of help and advice available.
If you’d like to find out more about how Team4 Solutions and AE Simplicity can help you breeze this instead of getting mired in the finer details of pension enrolment please contact either Fiona McNally or Lisa Walkden and they’ll be happy to help.
Reach Fiona & Lisa on 01825 763378 or firstname.lastname@example.org