Pension auto enrolment could catch out 500,000 employers
Up to half a million small and micro employers will need to take action to meet new workplace pensions regulations this year.
Any that do not comply with new rules governing auto enrolment pension provision for all employees will risk a fine, warns a new campaign from The Pensions Regulator.
The Pensions Regulator, the UK regulator of work-based pension schemes, will contact all small and micro businesses in the coming months to give them the information they need to be ready for the introduction of the new rules and details about staging dates.
These employers have already been sent letters by the regulator telling them when their new responsibilities start and reminding them to take action.
Under the new rules, even micro employers, such as those who hire a gardener or carer, will need to automatically enroll employees who earn £10,000 or more a year and are aged between 22 and pension age into a pension and contribute to it.
12 months planning
The Pensions Regulator Executive Director for Automatic Enrolment, Charles Counsell, said the regulator is concerned that some people might be leaving preparations too late, with research by The Pensions Regulator suggesting smaller employers are more likely to leave things until the last minute.
"We are helping employers avoid this by alerting them in good time to their duties and giving them the tools they need to meet them. Employers should start planning 12 months before their duties start and make our website their first port of call," said Counsell.