Auto enrolment for new employers
Unlike the current auto-enrolment staging system, from October 2017, all new employers will have automatic enrolment duties from the date they employ their first member of staff.
The Pension Regulator guidance states to advisers that:
‘If your client becomes an employer for the first time on or after 1 October 2017, they will immediately have legal duties for their new members of staff. These duties apply from the first day the first member of staff started working for your client. This is known as their duties start date.
Your clients must comply with their duties straight away.’
Therefore, if an employer has eligible employees to put into a pension scheme, they will need to identify a provider and they should leave plenty of time to do this. They should also ensure their chosen payroll solution is compatible with their scheme so that employees receive the pensions they are entitled to on time.
How we can help
Pension automatic enrolment is not always a straightforward process. Please do contact us for help and advice. We can advise on the process and assist with the payroll and pension reporting obligations to help you to comply with the requirements of automatic enrolment.