Preparing in advance for Auto Enrolment is a lot more cost effective!
It saves time
It saves Money
It saves Resources
Auto Enrolment is not the most exciting project to implement into your business, but unfortunately it is a legal requirement. There are many Auto Enrolment services available for businesses in the UK and by not doing your homework you could potentially over spend which would eat away at your hard earned profits.
Auto Enrolment came into place in October 2012. Starting with the largest employers first, working its way down to the smaller employers. This has been scheduled to phase over a five and half year period, aiming to be completed for February 2018.
This new legislation has come into place to tackle the economic issue of declining retirement savings amongst UK workers. With the basic State Pension currently being £113.10 per week per person, and life expectancy in Britain reaching its highest levels for both men and women; it is important we have other areas of income to remain financially stable during retirement.
A lot of businesses have already left this implementation to the last minute. To give you an idea of the challenge that is faced ahead. There are 30,000 medium sized businesses (that have between 50 and 250 staff) reaching their staging date between April 2014 and the end of the year. A further 44,500 are required to comply in 2015; going up to 450,000 in 2016 and 850,000 businesses in 2017. With such high numbers there has been a predicted risk of advisers and solution providers running out of capacity.
It can take from 3 to 9 months to implement the new changes depending on the complexity of your business. By not preparing in advance businesses could consequently end up missing their staging date leading to a fixed fine of £400 with daily charges up to £10,000 PER DAY until you are fully compliant.
Being a business service outsourcing supplier sourcing your Auto Enrolment services has great advantages. We partner up with Auto Enrolment specialists with a range of solutions. We recommend speaking with at least two or three specialists whether you use us or not. With the notion of two heads are better that one, five heads better than two, you will be able to obtain great ideas that you might not have been able to get going down just one route. Our suppliers are here to find you the best, cost effective solution for your business, whether you go for a cloud based solution, looking to save costs with salary sacrifices and employee benefits to taking on an extra member of staff to manage the whole process.
If you would like to chat about Auto Enrolment or arrange a consultancy visit with any of our approved Service Providers please contact us.