Starting your own business can be both exciting and daunting at the same time, especially if you intend to employ staff. There are a number of key steps that you need to take when planning on starting your own business. We have listed out below, some of the necessary steps including:
Step1: Decide what type of employee you need and check you can afford to take on employees
Step2: Make your workplace safe and accessible for employees
Step3: Register as an employer and set up PAYE
Step4: Check your responsibilities around workplace pensions
Step5: Get Employers’ Liability insurance
Step6: Recruit and employ staff
For more information visit: GOV.UK https://www.gov.uk/get-ready-to-employ-someone
One of the most important steps is Step 4: Check your responsibilities around workplace pensions
Workplace pensions and automatic enrolment – employing staff for the first time
It’s important that you understand what to do and by when, so you can meet your automatic enrolment duties on time. If you don’t comply, you may face enforcement action including compliance notices, and penalty notices (fines) from The Pensions Regulator.
Automatic Enrolment for Employers
What is automatic enrolment?
Under the Pensions Act 2008, every employer in the UK must put certain staff into a workplace pension and pay into it. This is called ‘automatic enrolment’.
The Pensions Regulator is responsible for ensuring that all employers comply with workplace pension law. It’s important that you understand what you’ll need to do and prepare early.
Does automatic enrolment apply to me?
Whether you’re an architect, a newsagent, have a personal care assistant or a nanny, you are an employer from the day your first member of staff started working for you and you have legal duties.
If you are employing staff for the first time, your legal duties for automatic enrolment begin on the day your first member of staff starts work. This is known as your duties start date. You should start preparing early in anticipation for this, so you know what you’ll need to do.
How can I find out what I’ll need to do?
What you need to do will depend on whether you have staff who need to be put into a pension scheme or not. All employers have duties, which include completing an online declaration of compliance to tell The Pensions Regulator exactly how you have fulfilled your legal duties under Automatic Enrolment.
You can use The Pensions Regulator’s online tool to find out what you’ll need to do for automatic enrolment including:
Step1: Choose a pension scheme
Step2: Work out who to put into a pension
Step3: Write to staff
Step4: Declare your compliance
Each time you pay your staff (including new starters), you must monitor their age and earnings to see if they need to be put into a pension scheme and how much you need to pay in. Find out more about your ongoing duties.
Understanding your costs
You may need to think about one-off costs to set up automatic enrolment, as well as the ongoing cost of paying money into the scheme and managing the process. Read more about understanding your costs.
Guidance and support
The Pensions Regulator and other government departments provide a range of comprehensive support material for employers regarding workplace pensions and automatic enrolment.
However, the reality is that The Pensions Regulator has to date issued over 600,000 enforcement notices which include over 166,000 Fixed Penalty Notices (fines) and over 54,000 Escalating Penalty Notices (fines) to businesses who have failed to meet their employer duties. Many of these notices have been issued due to a lack of understanding of the rules and procedures by employers rather than deliberate non-compliance.
That’s where Workplace Advice Group can help. We provide employers with a complete automatic enrolment and workplace pension service.
Employers need expert help and advice to understand their new legal duties, the impact on their business and the changes they will need to make.
Next, they need to implement the changes efficiently and ensure they continue to meet their employer duties on an ongoing basis.
Our fee structure has been designed to assist employers with their cash flow and is tailored around the needs of each individual business.
We offer all employers a free, no obligation face-to-face meeting or conference call to explain:
- What is auto enrolment and why it was introduced?
- What actions need to be taken and what are the costs?
- What happens if you do not comply?
- How Workplace Advice Group can help you meet your duties?
Our comprehensive range of support and services allows us to help employers:
- Design – a solution tailored to individual needs
- Implement – the changes needed with minimum disruption to their business
- Support – the right scheme in the most efficient and cost-effective way to ensure you are getting the best possible outcome for your staff
To find out more about how we can help please contact us on 01782 269787 or email us at email@example.com