No matter how small the business, every employer must enrol qualifying employees into a pension scheme, manage the additional processes, collect employees' contributions, manage contributions to the employees' pension and comply with all Automatic Enrolment aspects of the Pensions Reform Acts 2008 & 2011.
The government has introduced Auto Enrolment because more and more pensioners are being supported by fewer workers. The legislation helps every employee to save more for their own retirement as the State Pension scheme will only provide a basic, affordable safety net for us all.
If you have two directors or just one employee, you will have duties to perform under the law. This will include assessing your employees by age and income, categorising the outcomes and maintaining an audit trail of your research for at least six years.
You will need to set up a pension scheme if you do not already have one. If you already offer your staff a pension, you will need to check that it complies with the new regulations.