Auto-Enrolment for Small Businesses
17 June 2016
Auto-enrolment is an important step in ensuring all employees have the opportunity to save for their retirement. Auto-enrolling employees into a workplace pension scheme is a legal requirement for all businesses, from those employing hundreds to those with only 1 or 2 people on the payroll. To keep compliant with the rules it is important that employers prepare properly for the event and give themselves sufficient time to do so.
Over 6 million workers have already been enrolled since 2012. A further 1.8 million are due to enrol over the next two years as it comes the turn of the small employers to start the process.
The majority of companies are complying with the auto-enrolment process but non-compliance is expected to rise as smaller employers are probably not adequately prepared and can feel over-whelmed with the administrative burden.