The Clock is Ticking – Have you set up your workplace pension yet?
From 2012, employers were required to automatically enrol all eligible jobholders into a qualifying workplace pension scheme and to make minimum contributions into it.
The Department for Work and Pensions (DWP) is responsible for the policy and legislation. 2015 is when this will be really gaining momentum as the staging dates are increasingly reaching the SME businesses. The DWP have already published details of exactly when each employers staging date will be. Just follow this link to find out when yours is.
To make sure that you get a pension in place which matches your business needs, you need to plan at least 9-12 months ahead. Don’t forget that the closer you leave it to the staging date, the less pension schemes may be available to you which could increase your costs.
You also need to know that you can suffer serious financial penalties for not having a pension in place at your staging date. For instance, if you fail to comply with an escalating penalty notice to set up your workplace pension, it could cost you up to £10,000 as a daily rate, depending upon the number of employees you have.