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Auto-enrolment – where to start...

The preparation for auto-enrolment is now in full swing and 2014 is going to be a very busy year for all involved - but where do you start? 

The staging date is a key piece of information as you can work back from this date to plan what preparations need to be made and when. An employer's staging date is determined by the number of people in their largest Pay As You Earn (PAYE) scheme, based on the latest data from HM Revenue and Customs held by The Pensions Regulator on 1 April 2012.

The Pensions Regulator (TPR) will contact all employers to confirm their staging date, but you can look up a client's information by entering the reference of their largest PAYE scheme into the TPR’s tool.    

Be aware of the 2014 saturation spike!

Product providers have warned of the ‘2014 spike’ and how they will reach saturation point very quickly, leaving those employers who have left doing anything until their staging dates at the back of a very long queue. 

Doing nothing is not an option

Fines for employers who do not comply are extensive and costly. Firstly a fixed penalty notice of £400 will apply, then fines by the day will be enforced: 

Number of persons

Prescribed daily rate (£)









500 or more



Understand your client's workforce

Whatever your level of involvement, you'll need to understand the different types of worker and what defines them, as well as the corresponding employer duties for each type of worker. Some types of contracts will require close examination to identify where the employer duties lie e.g. for agency workers or contractors. 

Choosing a good scheme

Many employers will be setting up new schemes and may need your help to identify a qualifying scheme that's right for their business and which also produces a good outcome for its members. 

Enrolment and managing the schem

A specific process must be followed to enrol jobholders into the chosen scheme. Once active membership has been achieved, there are ongoing responsibilities that you may be involved in, such as ensuring contributions are paid on time and that any opt-out or opt-in notices are processed and accurate records maintained. 

Communicating the changes to workers

There is a range of information that employers are required to provide to their workers. You may be asked for help with this, such as providing them with financial information about the contributions they and/or their employer will be making towards their pension.

Some information must be sent individually to each worker. HR professionals in particular are likely to be closely involved in communicating with workers about how automatic enrolment affects them, as well as making sure the right person gets the right information at the right time, e.g. if they change worker category.

A new website has been launched to show employers what their duties are and to recommend that they speak to their adviser for support. The site is SimplyEnrol and can be accessed via



[Sponsored article by SimplyBiz]


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Author: IFA Life Sponsored Post
Posted: Tuesday, January 14, 2014 | 9:51:41 AM

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15 January 2014 | 6:34:14 PM  Adeline Luther wrote:
This is a wonderful post and hopefully will steer many employers in the right direction in fulfilling their obligations as an employer in the new scenario.

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