Employers of nannies and housekeepers are risking fines because of their casual attitude towards auto-enrolment, wealth management firm St. James’s Place has warned.
For anyone not paying their staff through a pay as you earn (PAYE) scheme, which is likely to include those with a nanny, housekeeper or chauffeur, the staging date set by The Pensions Regulator is 1 April 2017.
Steve Moy, wealth management consultant at St James’s Place, said: “Micro employers should start preparing for auto-enrolment now and be seeking professional advice in good time if they are unsure of their new responsibilities.
“Many employers are burying their heads in the sand, thinking auto-enrolment will somehow pass them by or that they do not need to do anything to comply with auto-enrolment. It is extremely complex and people need to allow time to plan and prepare and to adjust to new payroll systems.”
Moy also believes the government can do more to help micro employers understand their auto-enrolment responsibilities.
He said: “Government advertising has been effective at letting employees know about the process, but we believe that more needs to be done to educate employers, particularly those employing just one or two people. There is a real danger of many people leaving it until the last minute before taking action.
“The language being used is still too complex and needs to be kept simple and jargon free so that the average man on the street can understand. It is important to notify staff of the changes being made to their salary, as money will come off their monthly wage to contribute to the pension pot.”
