2015-07-10  

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Auto Enrolment Applies to All Employers Big or Small

Auto Enrolment Pension Platform, Smart Pension, urges all employers to get on board with auto enrolment including farmers and those with home help such as nannies and personal carers, or risk hefty fines.

Since 2012, new auto enrolment legislation means that employers have had to start providing a workplace pension for their employees. This long term initiative was conceived in an attempt to get more people to start saving, and to save more, for their inevitable retirement.

Calf Feeding

Over 47,000 large and medium sized companies have already embarked on the auto enrolment process, enrolling more than 5 million workers onto a workplace pension scheme. It is now the turn for SMEs to follow suit and it is expected that between now and 2018, a staggering 1.3 million small and micro firms will have to offer their staff a workplace pension.

As well as small and micro firms, the auto enrolment legislation also applies to many people who don’t consider themselves to be an ‘employer’, such as those who hire home help such as nannies and personal carers. Also, businesses such as farming, where the number of employees tend to fluctuate throughout the year and where, more often than not, employees are relatives of the farm owner, are also not exempt from the auto enrolment laws. In the eyes of the law, whether you have 500 employees or just you and one other, you are considered to be an employer and therefore not exempt from your auto enrolment duties. If your nanny, personal carer or labourer (family or not), is earning more than £10,000 a year and is aged 22 or over (but under the state pension age), they will need to be automatically enrolled into a workplace pension. This needs to be done by the stipulated staging date as notified by The Pensions Regulator. Failure to do so will result in a fine, which can escalate to even bigger and more severe penalties, including imprisonment. For employers that already have a pension scheme in place, they are responsible for making sure that the scheme is compliant with the new auto enrolment guidelines.

For small employers who may or may not have had any previous experience in managing pensions, the idea of auto enrolment can be very daunting. And, yes, while there is a lot of research that needs to be undertaken to ensure that they have all the right information at the right time to be able to enrol their employees into a workplace pension by the staging date set out, the process can actually be rather quick and painless.

It’s just a matter of finding the right partner who can provide you with all the necessary tools to get you on your way to becoming compliant. Smart Pension took on board the concerns of employers and developed a purpose built auto enrolment platform that gives employers the ability to sign up fast in one sitting, at zero upfront or ongoing cost, and with minimal input and fuss.

Being web-based and self serviced, the Smart Pension platform is fast. Employers can manage their pension from the comfort of their own home, and as it’s compatible across multiple devices, employers can even manage it from their mobile phone. It’s also 100% encrypted to ensure that it is 100% secure. With a lot of sensitive information flying around, Smart Pension has put in measures to give customers peace of mind that their details won’t get lost or be made public. Finally, for employers who sign up to the Smart Pension standard plan, it doesn’t cost them a penny. Smart Pension is able to do this because it doesn’t have costly overheads, so the cost benefit is passed directly onto the employer.

With a platform like this easily available, there really is no excuse not to get on board and it’s for the benefit of the employer to sign up by the staging date or run the risk of incurring unnecessary fines.

Smart Pension

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