Over one in five (21 per cent) small employers are missing their automatic enrolment staging date, risking fines from the regulator.
Statistics from provider Now: Pensions show the incidence of firms complying with auto-enrolment rules either just before or after the deadline is increasing.
In Q2 2016 19 per cent of firms complied within a month of their staging date, in addition to the 21 per cent who missed it entirely.
Firms that do not comply receive a 28 day warning notice. If the warning notice is ignored, a fixed penalty notice of £400 is issued.
In addition, employers with between one and four employees, can be fined £50 a day. Those with between 5 and 49 members of staff can be fined £500 a day.
Now: Pensions chief executive Morten Nilsson says: “As time goes by, it’s becoming increasingly clear that when it comes to auto enrolment, smaller employers are divided into planners or procrastinators.
“While it’s worrying that one in five are missing their staging date, it’s also reassuring to see that a third are planning well in advance.
“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.”