1 in 5 businesses are completing their auto-enrolment applications after their staging date has passed, according to research by NOW: Pensions.
Of the firms that registered with the workplace pensions provider, 40% completed their application either close to their staging date or after the deadline.
The figures show that:
- 34% signed up 6 months or more ahead of the deadline
- 11% registered 3-6 months in advance of their staging date
- 5% of employers engage with auto-enrolment 2-3 months in advance
- 10% registered their scheme between 1-2 months ahead of their staging date.
Employers who fail to comply with their auto-enrolment duties will receive a 28 day warning notice. If the notice is ignored, a fixed penalty of £400 will be issued.
If the company continues its non-compliance, a rolling daily penalty based on the number of employees will be applied. Those with 1 to 5 employees can be fined £50 a day, while those with between 5 to 49 workers can be fined £500 a day.
Morten Nilsson, CEO of NOW: Pensions, said:
As time goes by, it’s becoming increasingly clear that when it comes to auto-enrolment, smaller employers are divided into planners or procrastinators.
“Small business owners have a lot to think about and it’s easy for auto enrolment to be put on the back burner but the fines for non-compliance are steep missing the deadline can cause unnecessary sleepless nights.”