In response to the October feature, Auto-enrolment tips for smaller employers from larger firms, the main differentiator between small and large organisations is having the resources to deal with auto-enrolment.
Smaller employers just do not have as much bandwidth to deal with the increased demand on people carrying out the administration associated with auto-enrolment, or the increased time it takes to understand the legislation and communicate it effectively to employees.
The financial burden is also something that small businesses will not always be able to absorb, so the onus is on them to prepare now and review their pricing and cash flow accordingly.
Software can help eliminate this burden, but it is important for organisations to use a solution that is fully integrated into their payroll system and covers every element of the auto-enrolment process. Having to use additional products and tools outside of payroll will only increase the burden on businesses.
Jonathan Dowden is pensions expert at Sage UK
There are systems up and running now that do not fully integrate with payroll, but do the job of providing an end to end process and full TPR compliant audit trail. Our system is being used direct by employers and IFAs/Payroll Bureaus who have administrators each managing up to 50 schemes at once on a HUB.
Recent surveys shown on EB.co.uk showed that up to 75% of employers will outsource AE administration. What the professional advisers need is a solution that help them, their clients and their employees too. That’s why ours is a stand-alone platform that can manage multiple schemes for each employer and provide the employees with an interface to monitor their contributions and a way in which to trigger their opt-outs.
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