Auto-enrolment first started to take effect a while ago now, but many businesses that moved over to the new process are still finding it a hassle. For businesses taking on employees for the first time, the need to navigate the auto-enrolment process is an extra challenge to navigate. This is why many new and existing businesses are turning to auto-enrolment services for expert help.
THE IMPACT OF AUTO-ENROLMENT
Under auto-enrolment, all qualifying employees in the UK will be automatically enrolled in an occupational pension scheme. As the system continues to roll out, all businesses in the UK will be required to operate a workplace pension scheme by 2018, which includes both employee and employer contribution systems.
According to estimates from the Centre for Economics and Business Research (CEBR), small and medium-sized enterprises (SMEs) could have to spend as much as £28,300 each in implementing suitable, compliant processes for auto-enrolment. The expenses associated with meeting your auto-enrolment obligations are ongoing, and include employer contributions to the scheme as well as the costs of managing and administering the relevant processes.
The costs could be even greater if teething troubles lead you to make mistakes or if you aren’t ready to implement the new processes on time. Compliance issues will face penalties, and these could result in significant costs above and beyond those associated with getting ready for auto-enrolment in the first place.
These are the costs in pure monetary terms, but this isn’t the end of the matter. Implementing these new systems properly could cost them up to 103 working days of staff time and effort – time that could otherwise have been spent on running and growing the business. There will be a continued, ongoing labour requirement to administer the scheme once implemented.
HOW OUR AUTO-ENROLMENT SERVICE CAN HELP
Auto-enrolment is compulsory for all UK businesses, so there’s no way to avoid these problems entirely. However, there are a number of ways you can help to minimise the financial and practical impact of implementing and maintaining this process. At Rapid Payroll, we offer a comprehensive range of auto-enrolment services to help minimise the hassle and keep down the costs.
For our team, payroll matters are a full-time job. By using our auto-enrolment service, you will gain access to their pool of expert knowledge. Our team can help and advise you on some of the more difficult matters relating to the new system, including:
PLANNING AND PREPARATION:
We can help you assess the impact that auto-enrolment will have on your business and its cash flow, and identify ways in which you could keep that impact as small as possible. We can then help you prepare a smooth-running, effective and fully-compliant auto-enrolment process for implementation.
Staff fall into one of three categories in relation to auto-enrolment: non-eligible, eligible and entitled. Our auto-enrolment services can help you identify which of your staff members will fall into which categories, and then communicate to all staff members how they will be affected personally by auto-enrolment.
IMPLEMENTATION AND ADMINISTRATION:
Lastly, we can provide help and advice through our auto-enrolment service when it comes to the matter of putting all this careful planning into practice. We can help you achieve a smooth transition to the new way of doing things, and keep things running as they should.
You can get in touch with us for a quote, to ask a question or tell us about your project via phone or email. You can always pop in for a cup of tea and a quick chat to find out more about how we can help you.