By 2018, all businesses must operate a pension scheme for qualifying employees, with employee and employer contributions.
Whilst 2018 may seem a long way off, the Centre for Economics and Business Research (CEBR) is predicting that SMEs will face set-up costs of up to £28,300 per business to meet pension auto-enrolment requirements. They also estimate that it could take businesses up to 103 working days to implement, therefore it is vital to start planning as soon as possible.
Without doubt, your business will face increased costs from auto-enrolment whether this comes from pension contributions or the resources and management time needed to change systems and processes.
While you can’t avoid auto-enrolment, you can take steps to minimise its financial impact on your profitability, and here are the ways we can help you:
- Prepare for the start of auto enrolment in your business including an initial analysis of your workforce
- Identify who will be affected and who will need to be auto-enrolled.
- Explain the financial impact of auto-enrolment on your profit/cash flow and prepare a cost budget.
- Prepare communication letters for employees explaining how they will be affected.
- Plan for your staging date to ensure your payroll is ready for auto-enrolment.
- Advise on salary sacrifice and how you and your staff could benefit
- Ensure your systems are compliant
- Calculate employee and employer contributions and prepare payment schedules for the pension scheme provider
- Assess your workers each pay day to determine if they need to be auto- enrolled
- Register with The Pensions Regulator and help you keep the required records
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