27 Apr Workplace Pension Spot Checks – Dont get caught out!
Workplace Pension Spot Checks – Don’t get Caught out
More than 1.1 million employers across the UK have met their automatic enrolment duties, so 9.4 million workers have a workplace pension as a result.
However, some businesses are still not fulfilling their duties either correctly or not at all.
To ensure every business complies, The Pensions Regulator (TPR) is continuing with its spot checks on businesses to identify employers who are not complying with their pension duties.
TPR have used enforcement powers to issue Unpaid Contribution Notices to 753 businesses in 3 months last year. This is an increase from the previous quarter.
These campaigns highlight employers who have not taken the required steps to become or remain compliant with their Work Place Pension duties, meaning enforcement action can be taken against them.
Examples of non-compliance
There has been an instance of an employer terminating their staffs membership of the Workplace Pension scheme by logging in the using their personal details which is not allowed. Employees must opt-out themselves. This could result in a prison sentence or an unlimited fine.
In another case a company had not followed the correct procedure in informing staff and setting up a pension scheme. When they did eventually take action they provided false information to TPR. The employer had then deducted pension payments from staff salaries but not paid them in to a pension scheme.
The case has been adjourned for sentencing until May 2018.
Knowingly or recklessly providing false information is an offence and will result in a court appearance and a fine.
What to do if you are concerned
These spot checks will continue. If you are new to employing people or think you may need help then give us a call. We can help you set up your scheme and provide all the information you need.
Once you have your scheme up and running it’s important that you get this right from the start. You must continue to monitor your staff for any changes such as younger employees becoming eligible (turning 22) or staff earning over the £10,000 threshold.
Don’t put it off until another day, if you are worried about your Work Place Pension then visit the EA Assist website for more information or contact us now on 01379 646943 to find out how we can help you.