By law, when you take contributions from your employees’ wages, you must pay these to your pension provider by the 22nd of the following month.
What should I do if I’m unable to pay for contributions?
Things are very difficult for many businesses right now, and we understand that you may be experiencing problems paying for your employees’ pension contributions.
The Pensions Regulator (TPR) has said that auto-enrolment duties continue to apply as normal, including your re-enrolment and re-declaration duties. However, they’re taking a measured approach to this.
Even if you’re unable to pay for contributions, you should continue to send us your employee data every pay period. This means that we’ll be able to allocate contributions to your employees quicker once you are able to make payment.
We’ll still send automatic reminders to you when your contributions are late. We’re on hand to support you with any difficulties you may be facing, so please get in touch as soon as you can if this applies to you.
What could happen if I don’t pay?
When contributions are 90 days late, we’re obliged to report the case to TPR, and write to all affected members. You may be fined by TPR if you don’t pay outstanding contributions by this date.
When you’re able to pay
Simply log into your Online Services account and select ‘Make a payment’ from your account home page.
We’ll apply your payment first to the amount that has been outstanding the longest. This is to help you avoid falling into further arrears.
If you pay by automated collection
Please note, if you send us contributions data or ask us to take payment within 6 working days of your collection date, we won’t be able to request this from your bank in time. We’ll collect this payment on the next collection date. Our system sends automated emails, so you may receive reminders while we’re processing your contributions.
What support is available?
If you’re in financial difficulty due to the coronavirus outbreak, the government has made support available to employers.
Visit the government website for information on coronavirus support available.
The Pensions Regulator is also frequently updating their guidance to employers – check their website for the latest information and guidance.