Recent research from the Pensions Regulator (TPR) indicates that the majority of small employers do want to comply with their automatic enrolment (AE) duties. However these employers tend to fall into the category where they will leave their AE duties to the last minute which increases the risk of non-compliance. Because of this TPR have seen an increase in the number of compliance notices being issued. There is a perception that some employers still believe that auto enrolment doesn’t apply to them. Despite the increase in compliance notices that were issued a small employers minority have still ignored their warning.
If an employer fails to comply with their compliance notice, they will receive a fixed penalty notice. If this is ignored the employer will then receive an escalating penalty and fines begin to skyrocket. If an employer is having difficulty complying with their duties, TPR urges them to get in touch to discuss their situation sooner rather than later. Read: What happens if you don't comply with automatic enrolment?
Declaration of Compliance
Employers will obviously want to steer clear of AE penalties and avoid non-compliance. TPR advises employers to complete the declaration of compliance correctly and on time. An accountant, bookkeeper or payroll bureau can complete the declaration on behalf of their client. Make sure to complete the declaration in full. Some employers have received fines for failing to entirely complete their declaration. TPR will send a confirmation to the employer / client once the declaration has been fully completed and submitted.
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