Partner Article

6 things SME owners need to know about auto enrolment

Auto enrolment is set to affect SMEs in the near future. To help owners and directors, ParetoFP has created a free report containing all the information required to ensure the process goes smoothly. It answers the following questions in depth and much more besides:

What is it?

Automatic enrolment is the name given to the new Government pension scheme. Rolling out gradually, this process has already been implemented by the largest businesses in the country. Referred to as ‘staging dates’, eventually every business in the United Kingdom will have to introduce auto enrolment themselves, regardless of turnover or number of employees.

Why has it been introduced?

Auto enrolment has been introduced in response to longer life expectancy, meaning people spend more time retired, and a general lack of saving for retirement. Including all workers in a workplace pension scheme ensures that their state pension income is sufficiently supplemented in retirement.

When do the new regulations come into effect?

Auto enrolment has already been introduced in the businesses with over 10,000 employees. The process will gradually be introduced to businesses of smaller sizes.

Which employees will be affected?

• Only employees meeting the following criteria must be automatically enrolled:
• Work in the UK
• Aged between 22 and state pension age
• Earn more than £10,000 per year
• Not be currently enrolled in any workplace pension scheme

How much will it cost?

The cost of implementing the process will initially be felt in terms of the time it takes to make the appropriate arrangements. Following this, employers are required to make a contribution into the pension in line with what their staff make. This will also be supplemented with government tax contributions.

Should auto enrolment be outsourced?

Although larger companies may have the resources to carry out the process inhouse, for many SMEs this may be unfeasible. Enlisting the services of a specialist financial company will not only ensure the arrangements are made in the shortest possible time, but will guarantee accuracy.

To find out more about how auto enrolment will affect businesses and the steps that need to be taken beforehand, download the full free report now.

This was posted in Bdaily's Members' News section by ParetoFP .