Under guidelines issued by The Pensions Regulator if you have started a new business or are becoming an employer for the first time you need to work out what your duties are and comply immediately.
This means that you have to enrol your staff the first time you pay them unless you choose to operate postponement. This is different to the many million other employers who have had some lead in time before having to start a workplace pension for their staff.
If it is less than six weeks after their duties start date, you must backdate your member of staff’s scheme membership to the day they first met the age and earnings criteria to be put in a scheme (this might be the day they started work), and may need to backdate contributions as well. Alternatively, you can use postponement to delay the assessment of your workforce for a period of up to three months from their duties start date.
If more than six weeks have passed since the staff member(s) became eligible client’s duties start date, you’ll have to do the same but will not be able to use postponement.
Important note – you can’t delay setting up a scheme even if you use postponement
You can find more guidance on this on the Pensions Regulator (TPR) website.
Here you will find information for new employers because from 1st October 2017 they have a legal duty to put eligible staff straight into a workplace pension as soon as they employ them.
You can also talk to us. We’ve got loads of experience helping employers like you comply with the guidelines.
Contact Amanda Cowie, Robson Laidler Wealth on 0191 281 8191 or email email@example.com