Auto Enrolment- Will “WORKIE” make the difference ?
DWP have introduced “WORKIE” a big furry animal to increased the awareness by spending £8.54 million on a new campaign, this is a fun and quirky campaign but behind it lies a very serious message.
In my day to day life I am still visiting companies who have done nothing with regards to there AE responsibilities and who have already passed their staging date and think nothing of this.
The pension regulator has issued 469 compliance notices between 1 July and 30 September this year – a four-fold increase on the last quarter. The majority of these were to employers who had failed to complete their declaration of compliance on time – ie within five months of the staging date.
So what really happens if you are not following the procedures:-
We can issue penalty notices to punish persistent and deliberate non-compliance.A fixed penalty notice will be issued if you don’t comply with statutory notices, or if there’s sufficient evidence of a breach of the law. This is fixed at £400 and payable within a specific period.
We can also issue an escalating penalty notice for failure to comply with a statutory notice. This penalty has a prescribed daily rate of £50 to £10,000 depending on the number of staff you have.
We can issue a civil penalty for cases where you fail to pay contributions due. This is a financial penalty of up to £5,000 for individuals and up to £50,000 for organization’s.
Where employers fail to comply with a compliance notice or there is evidence of a breach, we can issue a prohibited recruitment conduct penalty notice. This penalty has a prescribed rate of £1,000 to £5,000 depending on the number of staff the employer has. We aim to fully recover all the penalties that we issue. This can be a very painful and costly exercise if a fine of £5,000 is dropped in you mail.
Advice is crucial to make sure you are complying with the law and you responsibilities under Auto enrolment.
The top reasons that employers have been calling us this month are as follows.
Click on the questions below to find the answer.
Your must show the company are meeting their automatic enrolment duties. This means completing a declaration of compliance using our online service within five months from their staging date. This confirms to the regulator that they have fulfilled their legal duties.
The duty to declare lies with the employer, but they are able to authorise someone to do this on their behalf.
A declaration of compliance has to be completed for every employer who employed staff on their staging date, even if they have not had to enrol anyone.
An employer’s declaration of compliance is a legal duty. If it is not completed within five months of their staging date they could be fined Advanced Asset consultants can guide you through the compliance and monitoring of your scheme so as to avoid any unnecessary breaches.
Contact AAC on 0141 331 2434 or firstname.lastname@example.org