Whether you employ 1 person or 100s – all employers now have workplace pension duties. Even if you think you won’t need to put your staff into a pension scheme, your responsibilities begin on the day your first member of staff starts work.
There are 3 tasks you must carry out to meet your legal duties.
1. Assess your staff
If your staff meet the criteria below, you must put them into a pension scheme and pay into it.
- Aged 22 or over
- Earns at least £10,000 a year
2. Inform your staff
You must write to all your staff within 6 weeks of your duties start date. This tells them how automatic enrolment applies to them – regardless of whether or not they are put into the pension scheme.
3. Declare your compliance
Within 5 months of your duties start date, you must complete an online declaration of compliance. This tells The Pensions Regulator how you’ve met your legal duties.
Workplace pensions are not a one-off effort.
- Employers (or their payroll agents) must continuously assess the workforce.
- Exchanging information with the pension provider every pay period.
- Reconciling and paying contributions.
These tasks will increase the cost of running your payroll.