Auto Enrolment – Things to Avoid

Auto enrolment – Things to avoid.

We have come a long way since the government’s introduction of Auto Enrolment with over 43,000 employers staged so far.  It is estimated, however, that 45,000 employers are still to stage this year and a further 1,000,000 next year and beyond.  So what can employers approaching their staging date learn from those that have already been through the Auto Enrolment process?  We have summarised the main areas where businesses have previously failed:

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Only thinking about staging
Although your staging date is the most important date to think about during your Auto Enrolment transition, you also need to think about your obligations beyond this.  There are a lot of administrative duties to be carried out during each pay period such as calculating contributions and updating employees’ status – if you pay staff weekly this can be very time consuming.   

Not getting information right
There are a lot of things you need to get right in Automatic Enrolment, but employee information is definitely one of the most important.  This data will help you to enrol staff into the pension automatically without any input from them and will save you time when it comes to implementing the scheme.  

Assuming you current pension provider is compliant
Many employers assume that their current workplace pension plan is suitable for Auto Enrolment or if not, their pension provider can switch them to one that is.  This isn’t always the case and many employers have been caught out by having to change providers at very short notice resulting in them rushing the decision.   Assured Wealth workplace pension specialist advisers can help you make sure your pension scheme is Auto Enrolment compliant and if not can give advice on the most suitable provider for your business’ needs.

Believing employees will opt out
Some employers have underestimated the cost of Auto Enrolment to their business as they have overestimated the amount of opt outs.  Less than 10 per cent of employees have opted out so far so it is very unlikely that you will make savings from this –we advise you to prepare for none!

Hoping current systems can deal with it
Auto Enrolment involves payroll and HR, so systems will need to work together.  If you are outsourcing your payroll you will need to check if they will take on the extra administrative work involved or not. 

Here at Assured Wealth, we can use our experience and expertise to help make sure you avoid the mistakes that other employers have been making.  We can provide guidance and support throughout the process making sure you have a stress free Auto Enrolment.

Contact Assured Wealth today for a no-obligation consultation and find out what we can do to help your business today.

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