Is your Business on track for Auto-Enrolment?

According to The Pensions Regulator, the next two years will see 1.8 million employers reaching their staging date for auto-enrolment.  This is the date by which, employers must have a qualifying pension scheme up and running for their staff. 

The numbers are set to peak, resulting in the predicted capacity crunch, in the last half of 2017. During this period an estimated 400,000 small and new employers will be required to have set up qualifying schemes.

Worryingly, research carried out by the Federation of Small Businesses found that 11% of employers said they would leave planning until the last minute and 51%, until the final three months before their staging date. 

Although it may be tempting to delay preparation, employers should not underestimate the considerable amount of administrative procedures that need to be in place prior to their actual staging date. This includes assessing the workforce, communicating with staff and reviewing pension arrangements. 

In the last two years, enforcement action against businesses that have failed to meet their auto-enrolment requirements has risen by 306% according to data from The Pensions Regulator. The fine for small employers with 1 to 4 members of staff can be up to £50 per day rising to £500 per day for 5 to 49 staff.

Further advice on what steps employers need to take can be found on the Payroll & Pensions page of our website.

Alternatively contact our Payroll team on 01460 68700 or email payroll@lentells.co.uk