The Chartered Institute of Payroll Professionals (CIPP) is warning new businesses that start up from October 2017 that they will have immediate auto-enrolment pension duties.
To date, auto-enrolment has been rolled out to existing companies, starting with large companies in 2012 and then small companies in 2015.
However, from October 1, new businesses will also be required to ensure they meet pension obligations from the date they register for PAYE. Those aged between 22 and State Pension Age and earning over £10,000 per year are eligible workers and must be auto enrolled into a qualifying pension scheme.
By law, companies will have to offer a workplace pension for all staff.
Employers must write to their staff to tell them how automatic enrolment applies to them. Employees earning below the threshold of £5876 per annum can request to be put in a pension scheme-the employer must set this up but they are not required to pay into it.
Larger companies who had their staging date in 2014 should now be considering their re-enrolment date. This date is three years after the auto enrolment staging date, however can be three months either side of the original date.
The Pensions Regulator (TPR) will write to new employers and those reaching re-enrolment to tell them what they need to do and by when.
Pierce is advising new enterprises to ensure that they fully understand their obligations and have pension procedures in place for when they appoint employees.
For more information about pensions, contact Philip Johnson on 01254 688110 or visit http://auto-enrolment.pierce.co.uk/