`The Chartered Institute of Payroll Professionals
News On Line
Pensions
Automatic Enrolment
What are the consequences of auto-enrolment non-compliance? Published: 6 May 2022 Emailed: 11 May 2022
The Pensions Regulator has used enforcement powers in over 500,000 cases in the last decade as a result of employers failing to comply with auto-enrolment legislation.
When an employer fails to meet their legal duties with regards to pensions administration, the Pensions Regulator will send a warning letter with instructions and a deadline for those duties to be met. If action is not taken, a statutory notice is sent out advising of unpaid contributions and possible interest due. If the breach continues, a penalty notice will follow. There are three types of penalty notices that pensions regulator may send out. A fixed penalty notice of £400 may be issued for failure to comply with a statutory notice or a breach of the law. This is followed by an escalating penalty notice. This fine increases every day at a rate of £50 to £10,000 per day, depending on the number of staff the organisation employs. The third type is a prohibited recruitment conduct penalty notice, failure to comply with which leads to a fine of £1,000 to £5,000.
Auto-enrolment compliance is a complex area of UK payroll. The CIPP provides an in-depth training course highlighting and explaining obligations of employers.
Back to contents
Automatic enrolment: do you employ seasonal workers? Published: 15 July 2022 Emailed: 20 July 2022
The Pension Regulator’s (TPR’s) current automatic enrolment (AE) campaign reminds employers who employ temporary or seasonal staff of their duties.
You must assess s easonal or temporary staff individually every time they’re paid, including staff who work for a few days, a few weeks or several months.
TPR have some helpful guidance pages to assist you with AE: • Employing seasonal or temporary staff • Staff employed on irregular hours or incomes • Assessing staff whose hours and pay varies.
With fines for non-compliance escalating up to £10,000, it is important to stay on top of your duties.
Back to contents
DWP confirm automatic enrolment future intentions Published: 14 November 2022 Emailed: 16 November 2022
The Department for Work and Pensions (DWP) has released a press statement celebrating ten years of automatic enrolment (AE). This transformational policy has resulted in over 10 million employees contributing to a workplace pension in 2021.
cipp.org.uk
Page 164 of 238
Made with FlippingBook - Online magazine maker