A recent report has found that only 46% of small businesses with fewer than 9 employees know their staging date for Auto Enrolment.
The research found that only 29% of small businesses have budgeted for Auto Enrolment costs.
The research, undertaken by the Association of Consulting Actuaries (ACA), has also revealed that 90% of employers with less than 249 employees would like their staging date to be delayed by the government until the full pension reform is complete.
The ACA report highlighted that more than a million businesses with 60 or fewer employees would need to start auto-enrolling up to eight million employees between October 2014 and 2018. The majority of employees will need to be enrolled onto the new pension scheme in a two-year window between June 2015-2017.
What is a staging date and why should I be aware?
The staging date is when an employer must start auto-enrolling eligible workers into a qualifying workplace pension scheme.
Since 2012 only those organisations with more than 50 employees in a single payroll have been required to start auto enrolment. However from next year, organisations with less than 50 employees will be impacted and by 2017 all employers must be meeting their auto enrolment obligations.
Use this Government tool to find out your Staging Date. Your staging date is when your automatic enrolment duties come into force and is based on the total number of people in your PAYE scheme. You will need your PAYE reference to find out your staging date.
By 2018, minimum pension contributions must be the equivalent of eight per cent of an employee’s earnings in a specified band, with earnings of £10,000 triggering automatic auto-enrolment. Employers will be required to contribute at least three per cent, with four per cent from the employee and one per cent coming via tax relief.
Find out more about introducing Auto Enrolment to your workforce and request a call back to arrange your FREE, no-obligation review meeting with one of our experienced HR Consultants.