Payroll for essential people

Automatic Pension Enrolment - Case Study

Summary

A cleaning company approached Essential Payroll with the request of helping them become compliant with Automatic Enrolment (AE) regulations. The issue this client faced was that they had incorrectly assumed that none of their employees wanted to be members of the pension scheme and so did not initially set one up. Subsequently, they had missed their staging date and were issued non-compliance fines by The Pensions Regulator (TPR).

 

The Issue Explained

All UK employers must automatically enroll certain employees into a pension scheme and contribute towards the employees’ pension. Automatic Enrolment regulations in the UK were put in place to help people save more money for their retirement and when an employer is not complying with their automatic enrolment duties, they have to act fast as TPR will issue fines. The fines can typically range from a £400 fixed penalty to varying daily escalating penalties from £50 to £10,000. 

 

The Solution

Our team of professional pension administrators quickly began assisting this client on the pension scheme selection by issuing all relevant communication to the employees of the company and auto enrolled the eligible employees into the company's newly established pension scheme. Following this, we calculated and deducted the pension contributions and declared compliance with TPR.

Through every step of the process of getting this client into complince with TPR, we communicated extensively with the pension regulator to update them on the steps our client was taking to meet compliance requirements.

 

Result

We have not only helped this employer become compliant with AE regulations and resolve their historical issues, but by putting in place a pension administration solution, our payroll experts helped this client with their on-going automatic enrolment duties and were subsequently able to agree a corrective action with TPR with only a small penalty being paid. The client was very satisfied with how swiftly the Essential Payroll team was able to tackle and deal with this issue before their business was issued significant charges.


Contact our payroll experts

Whatever your automatic enrolment needs, contact us today on 02382 023223 to find out how we can assist you.

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