A rise in the number of companies missing their Auto Enrolment Staging Date
Up to 700,000 employers are due to stage in 2017, this is the highest number since Auto Enrolment began in October 2012. This will include new employers that first employed a worker between 2 April 2012 and 30 September 2017 who will reach their staging date between May 2017 and February 2018.
As well as the number of employers staging going up, concerningly, the number of companies missing their staging date has also been increasing. Figures from The Pensions Regulator show that the number of employers failing to fulfil their auto-enrolment duties is rising.
The Pensions Regulator has repeatedly warned employers that companies failing to comply will face the consequences. These include a fixed penalty notice, which comes with a £400 fine, and an escalating penalty notice, which comes with a fine of between £50 and £10,000.
The Pensions Regulator’s Director of automatic enrolment, Charles Counsell, said,
“My message to all employers is that failing to declare within five months of your staging date means you risk being fined. It appears some medium employers waited for a prompt from the regulator before completing their automatic enrolment duties.”
With the mass roll out of automatic enrolment to a large number of small businesses in the coming months, a further increase of employers missing their staging date is expected. Charles Counsell continued saying “We recognise that employers have unique circumstances and challenges, but the law is still the law.”
If you have any queries or would like to discuss how we can help, please contact us.