A commonly held perception is that pension schemes for staff are only required for companies with a lot of employees and a high turnover. However, by virtue of the law passed in 2012, auto-enrolment into a company pension scheme is mandatory for every business type, be it on a big scale or small. It is obligatory that every employee of the company has the facility to be a member of a pension scheme.
There has been a hefty amount of penalty and fines imposed if the business owner fails to fix up the auto-enrolment scheme for their staff.
Based on the issued rules and regulations, the daily fine charged can range from £50 to £2,500 based on the total number of employees. Recently, PayCircle estimated that UK businesses could face fines totaling £22 million in auto-enrolment fines.
View this short video from the Pensions Regulator about Auto Enrolment for employers.
If you require any assistance or guidance on setting up a pension scheme arrangement within your company, consult with a professional part time FD from Assured FD Services.