Auto Enrolment is one of the most significant changes to employer responsibilities in recent memory and now poses important business dilemmas for employers of all sizes.
Part of the reason why it is so complicated is that there is no one size fits all solution to the new government legislation. Some companies are choosing to organise their own solutions, some are relying on their accountant or their IFA to deal with everything for a fee, and many more or choosing to go with a cost effective third party solution such as AEclipse.
Financial advisors tend to charge high up front fees and only set the scheme up, while accountants generally offer an expensive on going service once you have already staged.
Crucially though, ensuring that your business remains compliant is one of the key challenges. The new legislation has created a weighty administrative burden for businesses. Compliance not only relates to ensuring that the correct communications are sent out to your staff, but also how and when they are sent out. Failing to comply with the Pension Regulation's rules can result in heavy fines and there have already been some worrying headline figures:
- 3,057 Compliance Notices issued, bringing total issued to date to 7,834.
- 806 Fixed Penalty Notices issued in first three months of 2016, bringing total issued since 2012 to 2,234.
- 96 Escalating Penalty Notices issued this quarter, bringing total issued to 127.
If you use AEclipse's automation services to set up and continue to manage your Auto Enrolment responsibilities you can focus on running your business without the hassle or drain on your resources.