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A few of small business owners are not familiar with the pension auto-enrolment in spite of this alarming deadline

A few of small business owners are not familiar with the pension auto-enrolment in spite of this alarming deadline

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In a recent survey, about 2,300 small business owners in the UK has revealed that most of them have not heard about the auto-enrolment, but few of them says that it will affect the hiring of young staff. Auto-enrolment will be compulsory for all British’s businesses by this time next year, where business owners will significantly contribute to their employee’s pensions except if they opt out.

A national survey of more than 2,250 British small businesses has found out that more than 35% are not familiar with auto-enrolment, while 43%of the respondents’ answered that the cost of adding to workers pension scheme will affect them in employing new staff.

The survey was conducted through an online services marketplace, Bidvine. They asked questions about the automatic enrolment from registered small business owners.

The recent legislation will permit all UK businesses to contribute to their staff’s pensions before the end of February 2018. Most workers will be auto-enrolled to their work pension plan except if they feel like quitting. Noncompliance to this action will result in penalties and imprisonment for business owners.

When asked ‘has your business complied with the recent pension automatic enrolment?’ more than 35% of the respondents are not familiar with the latest auto-enrolment, while 33% answered was no.

About 43% of the respondents answered that the price of contributing to employee’s pension would influence the rate of hiring fresh workers and almost 62% claimed that most of their workers would ‘opt-in.’ asked respondents if they have received adequate assistance and necessary information for small businesses about automatic enrolment, more than 65% of the respondents replied no against the 35% that said yes.

About 66% of respondents are not familiar with the recent deadline for auto-enrolment against 34% that did.

When they were asked if they will agree with the compulsory automatic enrolment, 43% responds was ‘yes,’ but less than 31% claimed it should be voluntary if businesses would have to contribute to their worker’s pensions.

The amount of business and when it started to pay workers will affect if the government finally auto-enroll the scheme. But the cutoff point for every company is February 2018.

According to co-founder, Russ Morgan believed,

“We are interested in getting insight into small business owners claims about the recent automatic enrolment as it is going to affect employers in the UK. We were amazed to discover that many of them are familiar with the scheme.

“We were satisfied to know that the high number of business owners agree with the auto-enrollment which is a good idea, but 43% replied that the additional cost would affect appointing new workers. The government may need to consider the future that affects the employment.”

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