Auto Enrolment is a new law stating every employer MUST enrol workers into a workplace pension scheme if they:• Aged between 22 and State Pension age • Earn more than £10,000 a year • Work in the UK
Cost of Auto Enrolment for workplace pension scheme
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Auto enrolment will affect you unless
• You’re a sole director with no staff • There are a number of directors without employment contracts • The company has ceased trading, gone into liquidation or been dissolved
A declaration must be completed and submitted to the Pension Regulator whether you want to opt in or opt out.
For employers that AE affects there are 11 complicated steps to complete.
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The cost of not complying or meeting the deadlines are:-
1. A fixed penalty notice will be issued if you don’t comply with statutory notices, or if there’s sufficient evidence of a breach of the law. This is fixed at £400. 2. Penalties ranging from a prescribed daily rate of £50 to £10,000 depending on the number of staff. 3. Civil penalty for cases where you fail to pay contributions due. This is a financial penalty of up to £5,000 for individuals and up to £50,000 for organisations. 4. Where employers fail to comply with a compliance notice or there is evidence of a breach, the regulator can issue a prohibited recruitment conduct penalty notice. This penalty has a prescribed rate of £1,000 to £5,000 depending on the number of staff the employer has.
At ODA we can assist with the registration and compliance, just call us on 020 3137 9887