Don’t delay any further – the time to act is now.
As new pension legislation begins to affect the UK’s smallest companies, ‘research shows one in three small and medium-sized enterprises (SMEs) is not prepared.’
Sign up all eligible staff
Whatever each individual then decides to do, your obligation is to register all eligible staff for a pension.
‘Under new auto-enrolment rules, all businesses must sign employees up to a pension scheme. Staff can choose to leave the scheme or stop paying contributions, but companies of all sizes must enrol eligible employees.’
Companies with 60 employees plus had to do this by 1 October.
Now it’s the turn of smaller companies – with teams of under 50 coming under scrutiny.
‘From next summer to 2018, ‘companies with 50 or fewer workers will need to have a pension scheme in place. Businesses that do not comply with the regulations can face fines of between £50 and £10,000 a day, depending on how many employees they have.’
Too many businesses delaying
And yet, many businesses are delaying on getting the structures they need in place – a third, according to SME Insider, reporting on research from Barclays Corporate and Employer Solutions, conducted by YouGov on Yorkshire-based companies.
And it’s understandable. Running a small business is nothing if not busy. But… this is one of those things you simply cannot afford to ignore.
It won’t stay neatly swept under the carpet!