HR Hunter Ruthven · 8 August 2016
Micro businesses warned of possible 22m in fines
Britain’s smallest firms could face fines of up to 22m relating to a lack of understanding about auto-enrolment and workplace pensions duties, a new piece of research has suggested. With auto-enrolment compliance beginning in 2012 and now moving into a positionwhere employers with less than 30 staff are reaching staging dates, payroll and pensions platform Paycircle has warned that there could be a ‘spike? in the number of penalties being faced. Auto-enrolment law means that employers of all sizes must enrol staff in a workplace pension scheme and then make contributions of at least one per cent, unless it is proven that employees do not meet the eligibility criteria of being aged between 22 and pension age, earning over 10, 000 and already enrolled in a qualifying pension scheme. Figures from The Pensions Regulator show that some 459, 000 employers are expected to stage during 2016, with 57 per cent of those classified as micro employers (those having between one and four staff). The same research from The Pensions Regulator reveals 21 per cent of these size businesses still have a limited understanding? of auto-enrolment duties in the weeks before staging. Business Advice has partnered with The Pensions Regulator to showcase how three small businesses have gone about getting up to speed and then meeting compliance with auto-enrolment. Longthorne Gunmakers director Elaine Stewart told us, Get someone to do it for you. You receive all the facts and options in a clear way, and whilst the employer ultimately still has the compliance responsibilities, a consultant can take care of the necessary detail. it’s good value for money. Fines handed out by The Pensions Regulator to businesses not meeting auto-enrolment duties start with a 400 Fixed Penalty Notice. Paycircle has predicted that UK micro employers could be facing as much as 22m in fines over the coming year and a half mainly due to a lack of understanding.
ABOUT THE EXPERTHunter Ruthven
Hunter Ruthven was previously editor of Business Advice. He was also the editor of Real Business, the UK's most-read website for entrepreneurs and business leaders at the helm of growing SMEs.