The Pensions Regulator (TPR) continues to issue warnings, to employers, about the consequences of failing to comply with auto-enrolment.
In a recent court case, a pre-school nursery and its main director were ordered to pay over £8,000, for neglecting to fulfil their pension duties and for misleading TPR by providing incorrect information that suggested they were compliant.
The company had submitted a false declaration of compliance, which confirmed that 13 members of staff had been automatically enrolled into a qualifying pension scheme.
However, this was not the case and an investigation found that, in fact, no staff had been enrolled.
What is the declaration of compliance?
The declaration of compliance is a form that tells TPR what an employer has done to comply with their automatic enrolment duties.
If the employer does not submit this to The Pensions Regulator within five months of their staging date, or duties start date if applicable, a penalty may be issued.
Although you have five months to complete it, we encourage our clients to start the process as soon as possible after they have carried out their automatic enrolment duties. Doing so means there is ample time to put the documentation together accurately, rather than rushing and making unnecessary errors.
If all of the relevant information is on hand, it is a quick and easy process and one that our payroll experts can assist you with.
Employers must comply with automatic enrolment duties
In her ruling, the district judge recognised the detrimental impact that a failure to comply has on both the employee and the wider society.
Auto-enrolment is not a ‘choice’ to be made by employers, it is a government-led initiative under which employers have important legal obligations.
The outcome of this case is another stark warning to employers that there will be unfavourable consequences for those that flout the law by failing to provide an adequate pension scheme and, as such, risk the retirement of savers.
How can GH Payscheme help?
GH Payscheme is a professional payroll bureau service, based in Biggleswade and servicing Bedfordshire, Hertfordshire and Cambridgeshire. The services we provide have been developed specifically to help businesses operate more efficiently and cost-effectively.
We understand the importance of keeping both your employees and the taxman happy, which is why our team are happy to help you comply with all of the requirements of automatic enrolment and re-enrolment, including assisting you with administering your chosen workplace pension scheme.