If your client is unsure whether they used the transitional period, they can check: their payroll software their staff records to see the letters they wrote to staff telling them they were applying the transitional period to these workers the acknowledgement of their declaration of compliance that we sent out to them.
If your clients have applied the transitional period, they will need to take action to comply with the law. Read the new guidance on TPR’s website to find out what they will need to do, and when.
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When is a newly-merged company a ‘new employer’ for auto enrolment? 23 May 2017
If your clients are undergoing a merger, it’s important to understand how they should be treated for the purposes of automatic enrolment.
If they merge after 1 April 2012, but both employers remain as a legal entity in their own right and remain the employer for their respective workers, their staging dates will be the same as they were before the merger.
But if a new company is created as a result of the merger, they will be treated as a new employer and will therefore have immediate automatic enrolment duties.
The employer duties and safeguards will start to apply to an employer who becomes an employer on or after 2 April 2017 and does not have a PAYE scheme, irrespective of whether they pay PAYE income or not and an employer who first pays PAYE income to any worker on or after 1 October 2017.
To get ready for the onset of the employer duties and safeguards, anyone considering employing a worker for the first time on or after 2 April 2017 should:
understand their duties start date do an initial assessment of the worker or workers’ likely age and earnings on or before the duties start date. put a pension scheme in place if the initial assessment identifies that the worker will meet the eligible jobholder criteria get information ready set up payroll processes and software if needed decide whether to use postponement at the duties start date be ready to handle opt ins if needed keep records.
Read more about automatic enrolment and new employers under Section 2 of this guidance from The Pensions Regulator.
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New duties for master trust pension schemes 24 May 2017
The Pension Schemes Act 2017 places new duties on those involved with running master trust pension schemes.
This includes an immediate duty to report certain events known as ‘triggering events’, to The Pensions Regulator and to not increase charges for scheme members as a result of these events. These duties take retrospective effect from 20 October 2016.
The Chartered Institute of Payroll Professionals
Policy News Journal
cipp.org.uk
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