Two out of five (39%) of small employers are worried about the ‘damaging’ impacts of auto-enrolment, according to research by payroll software provider Sage UKI.
The research, which surveyed 500 small employers, found that 40% of respondents are worried about the administrative costs of setting up and managing auto-enrolment, while 51% are concerned about the cost of contributions and the impact on cash flow.
The research also found that 69% of respondents currently do not have a pension scheme in place.
More than a third (37%) said the government is not doing enough to raise awareness and help employers prepare for auto-enrolment.
Lee Perkins (pictured), managing director of Sage UKI’s start-up and small business division, said: “The reality is that auto-enrolment is here and the added cost could be problematic for employers.
“However, help is at hand to get organisations through this seismic shift in the way businesses deal with payroll and pensions.
“With staging dates on the horizon for many, the earlier a business seeks help the better, but employers must remember that software can do all the heavy lifting and the very complex process of integrating pensions into payroll is turned into just a few clicks of the mouse.”