The law on workplace pensions has changed. Under the Pensions Act 2008 every employer in the UK must put certain staff into a pension scheme and contribute towards it. This is called ‘automatic enrolment’. If your recruitment business employs at least one person you have certain legal duties under this new ruling.
There are seven basic steps that you’ll need to take to comply with the auto enrolment pension regulations:
1) Know your staging date
2) Assess your workforce
3) Review your pension arrangements
4) Communicate the changes to all your staff
5) Automatically enrol your ‘eligible jobholders’
6) Register with the Pensions Regulator
7) Contribute to your workers’ pensions
While there are serious consequences if you fail to comply, we understand that the various regulations can seem daunting.
For example, if you’re a director only business you do not need to follow the auto enrolment regulations, but you will need to advise the pension regulator of your business status, to avoid any assumptions that you are an employer. Also, while your staging date is not moveable you can use what is referred to as postponement rules to delay the first deductions of pension.
Furthermore, simply having a pension scheme in place does not fulfil the regulatory requirements. As an employer you would need to carry out an assessment of your workforce, communicate with them regarding their eligibility status, automatically enrol those employees meeting the criteria, and communicate with the pension regulator. You would also need to ensure you meet the minimum contribution levels.
For that reason we have put together a pension auto enrolment guide to help you through the process, and ensure you are compliant. Our guide answers some of the most frequently asked questions and details all the key requirements for you as an employer.
Click here to download the guide and find out how to get started.
If you’d like to speak to someone about your Auto Enrolment responsibilities and how the KPMG Small Business Accounting service for recruitment firms can help you meet your employer obligations complete a contact form at kpmgsmallbusiness.co.uk/recruitment-sector or call us on 0808 159 2839.