Accrington-based chartered accountants are urging the county’s small employers to comply with the auto-enrolment pensions legislation as research from Now: Pensions reveals that one in five employers are missing their staging date.
Haworths Chartered Accountants has warned Lancashire businesses that employ less than 30 employees to act before the spring deadline arrives or risk hefty fines.
By 1 April 2017, every business set up before 2012 will have to automatically enrol their eligible employees into a workplace pension and make contributions to that pension – even if they’re employing just one person.
Paul Spencer, director at Haworths Chartered Accountants, explained: “Large and medium-sized businesses have by now complied with the legislation leaving the UK’s smallest employers to follow suit.
“Those who miss their staging date will receive a 28 day warning notice from The Pensions Regulator. Ignoring it may result in a £400 fine and the employer may also be liable to pay further charges which start at £50 per day depending on a number of staff they have.
“The staging process can take anywhere between eight to ten weeks to complete so employers are now in the last few weeks to take action in order to avoid rushing through the process and making mistakes. I urge business owners to get in touch with their financial advisers or appoint a provider to ensure they’re aware of their staging date and up to speed with their compliance.”