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April 9, 2014
Auto Enrolment: 30% of SMEs are unprepared
Over 30 per cent of small and medium businesses (SMEs) are unprepared for auto enrolment, according to a new survey from Moorepay.
The figures revealed that 30 per cent of the 2,500 SMEs surveyed are oblivious or unsure of their responsibilities for the new workplace pensions laws.
Futher anaysis of the survey revealed that there were more ‘unsure’ companies who had either 5-49 or 4 or less employees – 50 per cent and 40 per cent respectively.
The Pensions Regulator (TPR) has said that the most common reasons for non-compliance with auto enrolment are either due to a lack of preparation or failure to engage with staff.
Following a response to a Freedom of Information request by Payroll World, The Pensions Regulator revealed 209 breaches of workplace pensions reform since the introduction of the new legislation. There are also many more suspected breaches.
The TPR says it intends to publish more information in the AE commentary and analysis 2014 report, which will be to be published in the summer.
A spokeswomen for TRP said: “The majority of compliance challenges have related to employer readiness, failure to register and providing information to workers.
“Employers can avoid compliance risks by ensuring they start planning for automatic enrolment in good time.
“They should ensure all their staff data is up to date and accurate, approach pensions and software providers sooner rather than later and test their systems beforehand.
“Employers must also ensure they complete registration with The Pensions Regulator on time.”
We can easily help companies meet their new legal responsibilities with a variety of easy AE solutions.