The latest auto enrolment non-compliance figures released
The Pensions Regulator (TPR) recently announced that 1,594 non-compliance fines had been issued since the workplace pension reform had come into effect back in October 2012; and that an astonishing 1,013 of these had been given out during the three month period between October-December.
This is an important statement as this three month period is after large businesses have completed their staging responsibilities. It would therefore suggest that there are a large amount of SMEs who are not meeting their auto enrolment responsibilities and are receiving fines for non-compliance.
The 6 key points from TPR include:
– 58 information notices issued
– 21 statutory inspection noticed distributed
– 4,818 compliance warning notices have now been issued
– 2,596 compliance warning notices issued between October 1st and December 31st 2015
– 1,594 fixed penalty notices have been issued to non-complying businesses in total since 2012
– 1,013 of these fixed penalty notices were issues between October 1st and December 31st 2015
Just this quarter alone, leading up to April 2016, TPR estimates that 99,000 businesses will stage for auto enrolment, and that over 570,000 companies will stage in the 12 months beginning April 2016. It is important that SMEs understand their responsibilities, as larger companies can usually absorb non-compliance fines, whereas for an SME, a fine coming out of the blue could have a serious effect. On the spot fines are currently set at £400, however TPR have the right to issue daily non-compliance fines for more serious, long-term breaches.
Ultimately, TPR have fines in place to act simply as a deterrent, and use their powers as a last resort. If your SME is struggling with auto enrolment and would like help, speak to TPR as soon as possible and discuss how your business can become compliant.
If you own or run a business which is yet to stage for auto enrolment, IRIS have a payroll software solution to help businesses of all sizes, including the acclaimed IRIS AE Suite™.
The IRIS AE Suite™ has been developed through close relationships with The Pensions Regulator, pension providers, as well as through customer feedback. The solution works within your payroll and is not a ‘middleware’ solution. It’s no surprise that the industry’s leading auto enrolment solution helps pay over 600,000 employees.
The best way to see the benefits the IRIS AE Suite™ can bring to your payroll, is by having a one-to-one product demo by one of our auto enrolment experts here at IRIS. There are no downloads, no installations, and the demonstration is of course at no cost to yourself. Book now to see how the IRIS AE Suite™ can help streamline your payroll and help your business comply with auto enrolment.