The Federation of Small Businesses (FSB) are encouraging SME owners to make sure that they are aware of the latest auto-enrolment milestone.
On 1st June, up to 14,000 businesses with fewer than 30 employees will be faced with the Government’s new pension rules.
These smaller firms have now reached their staging date to automatically enrol their employees in a workplace pension scheme.
Last year, SME Insider reported that a third of small businesses who had 60 employees or more were not ready for their auto-enrolment process. The FSB fears that the same problem is going to strike this current batch of small businesses.
‘‘The extension of auto-enrolment to hundreds of thousands of small businesses presents a major challenge. Awareness of the impending changes has picked up, but many have still yet to put into place plans to meet their duties. Small business owners are not pension experts and a significant number will not have any staff saving into an existing workplace pension scheme ,’’ said John Allen, national chairman, FSB.
‘‘Compliance with auto-enrolment must be low cost and entail minimal administrative burden. We still remain concerned that this won’t be the case for many small employers, and that many will face additional administrative as well as payroll costs. It is crucially important that businesses deal with this sooner, and do not leave it until the last minute,’’ continued Allen.