Nov 2017
13
If you think compliance is expensive – try non-compliance
As an employer, your declaration of compliance is a legal duty. If you do not complete it within 5 months of commencing your Automatic Enrolment (AE) duties, then you have not completed your legal requirements of Automatic Enrolment and may face fines. Even if an employer did not enrol any member of staff, a declaration of compliance must be completed.An employer can process their own declaration or authorise an agent to complete this on their behalf. The declaration is completed via The Pensions Regulator’s website. You can start the declaration now by clicking here.
Don’t delay or you could face prosecution – it is a criminal offence if an employer fails to put their employees into a pension scheme and/or provide false information in a declaration of compliance. The maximum punishment can be 2 years in prison if The Pensions Regulator proceeds with prosecution. The Pension Regulator’s checklist provides details of all the information you need when submitting your client’s or your own AE declaration.
What information does an employer need to provide?
You need your letter code and PAYE reference to access the online service. The letter code is unique to every employer and a 10-digit reference beginning with ‘1’. It is on all correspondence an employer receives from The Pension Regulator, you can contact [email protected] if you do not know it or have never received it. To contact customer service you must provide:
- Employer Name
- Employer Address
- PAYE Scheme Reference
- Your Contact Details
An employer’s PAYE reference can be found on correspondence from HMRC when first registered as an employer or from their payroll software.
The Pensions Regulator (TPR) is ensuring that all employers fulfil their duties required by the Pensions Act 2008. It is essential that all employers understand that even if they employ only one person they have certain legal duties for Automatic Enrolment. And if they choose to employ a new member of staff after 1st October, 2017 those duties apply from the day the new employee starts.
Remember, Automatic Enrolment is a continuous duty for all employers, and does not end after the staging date or duties start date (if you don’t have a staging date).
Avoid penalties by understanding how to meet your duties:
- Keep records of all AE activities for 6 years and opt-out notices for 4 years
- Monitor staff ages and earnings - as staff become eligible they must be enrolled
- Enrol employees and issues correspondence to them.
- Pay contributions to their pension scheme
All responsibility ultimately lies with employers.
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