The New Year is here, and Creative Auto Enrolment is advising the 1.2 million companies that are yet to stage for auto enrolment to focus on the legislation in 2015, OnRec reports.
According to the article, only 15% of businesses staging between the period of April 2014 and April 2015 considered themselves to be “well qualified” to handle auto enrolment preparations. The ambiguity surrounding the legislation is predicted to rise as smaller firms begin to stage.
As well as feeling uncertain when it comes to auto enrolment, the study also discovered that the majority of employers (66%) confessed that choosing a pension scheme was their biggest concern. In addition, only 16% felt confident enough to communicate the legislation to their employees within specified time limitations.
Creative Auto Enrolment states that SMEs should be cautious and warns them about the harsh penalties, should they conflict with auto enrolment legislation. Recent statistics released by the government have revealed that more than 50% of investigations into auto enrolment compliance thus far have been due to potential or actual breaches of the legislation; a figure that has doubled since the beginning of 2014. These instances are predicted to increase, as smaller businesses with fewer on-site resources try to understand the legislation.
Smaller companies can learn from bigger businesses to make sure they avoid auto enrolment pitfalls.
Rest assured that Liquid Friday is fully-compliant with regards to auto enrolment, as we understand that, when dealing with an umbrella company, compliance is one of the most important factors.