What happens if you ignore Auto Enrolment?
1 in 10 businesses say they are going to ignore the new
legislation surrounding work place pensions, but what really happens if you
ignore your Auto Enrolment staging date?
You will be issued with an EPN (escalating penalty notice). Employers who fail to take notice of 28-day warning notices, risk this fine
which increases each day. This means that you could be potentially be fined of
up to £500 per day, if you decide to ignore a penalty notice that The PensionRegulator has sent you.
More than 95% of the first small employers required to put their
staff into a workplace pension have now complied with the law, showing that Automatic Enrolment is successful for all sizes of employer. While compliance rates remain high, TPR’s
latest quarterly
compliance and enforcement bulletin shows that the number of Escalating Penalty Notice is on the rise.
If you have in-between 1-4 members of staff and you don’t take
notice of the letters and notices sent to you before the deadline, you will be fined £50 per day. If you employ in-between 5-49 members of staff,
you shall see your penalty build up by £500 per day.
My advice would be, don’t ignore these letters, make sure you
keep on top of them, and know the two important dates (staging date and
declaration of compliance date) and if you do get a fine, pay it as soon as
possible. Every small business is going to see a rise in administration costs due to this change, so keeping them as low as possible is the best way.
If you need help with Auto
Enrolment even if its just getting jargon buster so yo know the terminology, then Chrysalis Payroll are here to help – don’t hesitate to call us
for advice or assistance, you can find us at www.chrysalispayroll.co.uk/auto-enrolment, don’t become an Auto-Enrolment Statistic, we want to help you get it right, that's why we are now offering all our Auto Enrolment solutions completely free of charge with any 12 month payroll contract.
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