The Auto-Enrolment pension scheme legislation could prove “a significant operational and financial burden on small retailers,” the ACS has warned.
scheme, which started being rolled out by the government in 2012, all
staff must be enrolled in a pension when starting employment unless.
Many convenience stores will have to start enrolling their staff from
Employers will be required to pay 1% of an employee’s annual earnings into the pension scheme. This rises to 3% by 2018.
“Retailers are facing increased costs in many areas of their business,
including above-inflation increases in the minimum wage and changes to
statutory sick pay regulations,” said ACS CEO James Lowman.
“Auto enrolment has the potential to be a significant operational and
financial burden on small retailers, and we are keen to work with the
Department of Work and Pensions to minimise the costs of implementation
while ensuring that all retailers are aware of what is required.”
In its submission to the Work and Pensions Select Committee, the ACS
said nearly half of micro employers did not know the exact date when
they needed to comply, leaving them at risk of financial penalties
because of non-compliance, and disproportionately affecting the smallest
businesses in the convenience sector.
It also said the high
administrative cost of dealing with very small pension contributors
meant pension providers were more likely to reject smaller employers.
For the original article, go to: http://www.thegrocer.co.uk/people/people-news/acs-warning-on-auto-enrolment-pensions-for-smaller-retailers/373249.article
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