Auto enrolment can be daunting for small businesses for a number of reasons. From the financial implications to the changes in legislation and your responsibilities, there are many things to consider.
Recently, The Pensions Regulator announced that over 63% of all non-compliance fines given out since the workplace pension reforms began in October 2012, were given out between October-December 2015.
This is interesting as this would indicate that businesses with fewer than 40 employees were the recipients of the fines, possibly highlighting a lack of auto enrolment awareness amongst small and medium-sized businesses (SMEs).
Here are our 7 top tips for managing auto enrolment for your business.
Please note that this guide is for guidance only, and is not definitive advice for auto enrolment. For advice on staging for auto enrolment, please contact The Pensions Regulator.
- Know your staging dates
The first thing to know is when your business actually stages. This is the date on which your business and employees need to begin contributing to a workplace pension scheme.
- Find the right pension provider
Don’t assume that your current pension is a qualifying workplace pension. Read more>>
- Choose the right business software
The Pensions Regulator recommends that employers use payroll software that caters for their auto enrolment duties.
The easiest way to help ensure compliance with auto enrolment is by making sure that your payroll software is capable of handling the various calculations and deductions each pay period.
- Assess your workforce
Do this in advance to help understand the costs of pension contributions you will need to make for your workforce.
- Don’t forget to complete your declaration of compliance
Once your staging date has been reached and your workplace pension scheme is up and running, there are three things you then need to do. Download the full blog to find out.
- Don’t ignore the workplace pension
Failure to comply with the workplace pensions reform could see The Pensions Regulator issue your business with a warning notice at first, before a fine is later issued due to further non-compliance. After this, The Pensions Regulator is within its rights to take your business to court if further non-compliance continues.
- Speak to Farmplan for help
We understand that the workplace pension reform can seem daunting, so to help make sure that auto enrolment goes as smoothly as possible for your business we offer an easy to use software solution, support and training to ensure you have all the tools required to meet requirements.
Contact us for further details about the Auto Enrolment Module and Earnie Payroll.
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