Between 2015 and 2017, over a million small and micro business will be reaching their pensions auto enrolment staging date – in fact it’s a staggering 51,134 companies per month.
We’ve already mentioned the need to Payroll auto enrolment upgrade your payroll system if you’re going to meet your business’s staging date. But, even at this late stage, there are still many business owners and micro businesses that don’t seem aware of the need to comply with their auto enrolment requirements.
The Pensions Regulator is so concerned that it commissioned a TV advert featuring ‘Workie’, the workplace pension monster, to try and raise awareness that auto enrolment is still lurking at the bottom of many business owners to-do lists for 2016.
Workie might be cute, but we think a far better approach to the ‘monster in the workplace’ would be to find out your staging date and start planning!
Know your staging date
As a business owner, you should already have received a letter from The Pensions Regulator, telling you when you’re due to stage.
But if that letter has disappeared under a pile of paperwork (it happens), there’s a very simple way to check your staging date.
- Go to The Pensions Regulator website here
- Enter your business’s PAYE reference. If you’re not sure of this, look on your P6/P9 coding notice or on your white payslip booklet P30BC.
- Complete the box that asks you to enter the code shown above.
- Click ‘Show my staging date’ button.
And, hey presto, you’ll be shown the date by which your workplace pension scheme must be up and running.
Big fines for not staging on time
It’s worth noting that this date isn’t a ‘nice to have’. It’s a legal obligation. As an employer of one of more employees over 21 years old and earning more than £10k per year, the law states you must now provide a pension scheme.
If you miss that all-important staging date there’s a fixed initial penalty of £400. But this can be escalated up to a financial penalty of up to £5,000 for individuals and up to £50,000 for organisations.
Plan ahead and get ready!
As our October blog already pointed out, time is running out to complete all the reviews, scheme selection and systems upgrades needed for your small or micro business to get a workplace pension in place before your staging deadline.
At Tyrrell, we can help you plan ahead so you have all the important auto enrolment milestones in place and can upgrade your systems to cope with the additional need to pay pensions contributions.
Book a session with auto enrolment specialists to talk through how we can help you meet that staging date.