The cost of automatic enrolment
Meeting the requirements set up by auto enrolment legislation could cost UK businesses £15.4 billion in set-up costs, according to the 'Finding your way out of the auto enrolment maze' report provided by the Centre for Economic Business Research.
In addition to the financial costs, the report highlights that businesses must get to grips with the scale of the task ahead of them:
- There are a total of 33 tasks which must be complete by the staging date
- Getting ready for auto enrolment could take each business up to 103 man days
- Recurring administration for auto enrolment could take in excess of 3 days every month
"Businesses must start thinking about what they need to do as soon as possible, as they can't escape auto enrolment" says David White, commissioner of the report.
White also highlights that the work involved in auto enrolment preparation is potentially huge, specialist and complex.
“There’s no benefit to businesses delaying getting their auto enrolment strategy in place, but hefty fines will penalise those who don’t meet their responsibilities in time. With the clock ticking, businesses need to start thinking now about what their duties are under the new legislation and who within or outside their business can help them achieve this” concluded White.
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