Auto enrolment rules are designed to ensure employees are saving for their retirement, but this can also apply to company directors in certain circumstances.
Many directors might have assumed that they are exempt, but this isn’t always the case.
Here are some common scenarios to look out for:
- Employer only contributions – as a director of a company where only employer contributions are being made, you may be subject to Auto-Enrolment.
- No pension deductions showing on payroll? – You may still be treated as an “eligible employee” and automatically enrolled.
- Class ‘S’ PRSI contributors are exempt – but the moment you start to employ staff or appoint another director with a service contract, the company may trigger full auto enrolment duties.
- Declarations still matter – even if no one needs to be enrolled, failing to complete the required declaration of compliance with The Pensions Regulator could result in penalties.
- Re-enrolment checks – these are required every three years, meaning your duties don’t end after the initial set-up.
- Auto – Enrolment Opt-Out – employees will be in Auto – enrolment for a minimum of 6 months before you’re eligible to opt out.
- Deadlines – Company schemes need to be set up with payroll contributions being made by the end of November 2025 tomake sure not to be drawn into Auto-Enrolment.
Our colleagues in Xeinadin Financial Services work with company directors to review their specific situation, ensure compliance, and prevent unexpected costs or penalties.
Check your auto enrolment position today and make sure you’re protected.
