New startups must comply with pensions auto-enrolment duties immediately
Startup businesses who employ staff for the first time from 1 October are now subject to the pensions auto-enrolment regime. The practical consequence is that new businesses must take steps to automatically enrol employees into a pension scheme from the day they start work, or alternatively apply a postponement period of up to three months in respect of them before starting to make contributions.
To help simplify the steps which new businesses need to take, the Pensions Regulator has set up a new online resource page. The Regulator’s objective is to simplify the steps which startups need to take as regards pensions by providing information on what the employer duties are, what steps need to be taken and by when. In particular, the online portal allows businesses to confirm details around staff employed and salaries, so that they can confirm for themselves if they are in scope for auto-enrolment. The portal then provides a further guide on the practical steps which businesses need to take to choose a pension scheme, communicate auto-enrolment to members and make a statutory declaration of compliance to the Regulator.
For existing companies who started to employ staff after January 2016 but before October this year, the position is slightly different. These companies will be required to auto-enrol staff with effect from either 1 November, 1 January 2018 or 1 February 2018, depending on when they first started to employ staff.
If you are a new business and are required to auto-enrol staff for the first time, or have not yet reached your staging date, then please contact our Head of Pensions Andrew Campbell who would be happy to assist you with any questions you may have.
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