The Pensions Regulator (TPR) has disclosed that it has increased its interventions by 306% between April 2015 and March 2016 compared to the previous year. These interventions include 6,241 compliance notices, 2,002 fixed penalty notices, 400 unpaid contribution notices and 122 escalating penalty notices.
With up to 1.46 million businesses still to meet their workplace pension duties, my advice is to begin your auto-enrolment project at the earliest opportunity, remembering that as an employer you’ll still have duties even if you don’t have any eligible staff.
There are many misconceptions about auto-enrolment, with many employers believing that their payroll software will manage their auto-enrolment requirements either directly or via their accountant.
Increasing evidence derived from audits we’ve conducted proves that this doesn’t happen and the types of errors encountered are common mistakes that all lead to breaches with longer term implications, such as misunderstanding who needs to be auto-enrolled, inaccurate data and poor employee communications.
In a recent example a small logistics company approached us after their payroll provider had incorrectly set up the payroll software, the result of which was that we needed to wind back and re- run 40 weeks of assessments, re issue all communications, as well as the employer making good all back-dated contributions. The cost to the employer was in the thousands and with no contract or Service Level Agreement in place with their payroll provider the employer was left to pick up the bill.
There is getting it done and there is being compliant – there can be a huge difference. To help businesses yet to stage and those who have already staged Johnson Fleming is hosting a number of initiatives to help you better understand your employer duties and avoid potential penalties from the Regulator.
Visit Johnson Fleming’s events page and learn more about our dedicated auto-enrolment support. Why not attend one of our free webinars or workplace pension workshops and get personal advice? Alternatively, contact us today and learn how we can help you to remain compliant in your auto- enrolment duties.
Development Director, Johnson Fleming
T: 01527 571 223
David joined Johnson Fleming in early 2006 and has over 30 years’ experience in financial services.
Since beginning his career he has specialised in the field of pensions, working in the corporate sector for the last 25 years.
David has worked with numerous high profile organisations to develop their pension offering in key areas such as design, implementation, transition management, effective communication and governance support.
He’s been instrumental in the design and development of Johnson Fleming’s auto-enrolment offering for the SME sector as well as introducing and developing a number of significant business partnerships.