Partner Article

Small business still at risk of auto enrolment non compliance

The news that The Pensions Regulator is to write to small business explaining auto enrolment and their responsibilities is welcomed by financial planners LEBC.

Glynn Jones, divisional director group savings and investments, raised some concerns however: “There are two distinct categories of employer; those who use a payroll professional and those who do payroll themselves.

“Those using a payroll professional, such as a bureau, accountant or bookkeeper will be looking to their provider to help with the full process, including access to a Qualifying Workplace Pension Scheme (QWPS). Clearly payroll professionals should be ensuring that they have the systems and access to a QWPS ready for their clients to stage successfully.

This is an ideal time to prepare as the numbers of employers staging is low at present.

“The other group, who organise their own payroll are dependent on their payroll software to be fit for purpose and will either look to them for access to a QWPS or will have to organise it themselves, possibly through an adviser.

“It is good that The Regulator is getting its message out early, but, with over 1m employers to go, it is likely that there will be many who do not heed the warnings and will end up not complying with the legislation.”

This was posted in Bdaily's Members' News section by LEBC Group Ltd .