19 Jan Myth Busters: But I thought…
There are quite a few misconceptions about auto enrolment, here we dispel some of the most common.
“I’ve asked my employees and they don’t want a pension scheme, so I don’t have to do anything.”
Employees can ‘opt-out’ of auto enrolment if they want to but employers still have to comply with the legislation and offer a qualifying scheme. Employers must not do anything to encourage their employees to opt out.
“I’ve checked and my staging date isn’t until next year, so I don’t need to do anything until then.”
Your staging date is the date from which you must offer a qualifying pension scheme, so you will need to make preparations beforehand. You may want to consider setting up and getting ready at least 6 months before your staging date, so you’re all ready to go.
“I’ve only got one employee apart from me, so I shouldn’t think this applies to me.”
This legislation applies to ALL employers with one or more employees, so even if you only have one employee in addition to yourself, you still need to implement auto enrolment.
“Most of my employees are part-time, so I won’t need to do anything.”
Eligibility is actually based on earnings and age, rather than hours worked, so you will need to go through the process of assessing each employee before you can be sure. Even if you don’t have any eligible workers who would need to be automatically enrolled, you will still have to put in place a qualifying scheme in case any of your non-eligible workers want to join. The NHF software will check eligibility for you – you simply input your payroll information and it will tell you which of your employees are eligible.