SMEs are not alone when it comes to auto-enrolment

Workers can opt-out if they wish, but only after they have been put into the scheme.

2. Know your staging date. This is the date you must start enrolling staff.

You can check your staging date by visiting The Pension Regulator’s website and entering your PAYE reference.

3. Understand your employees’ rights. Workers have the right to opt-out of the scheme, but you must not encourage them to do so.

4. Start planning early. Allow at least six months to prepare for auto-enrolment. The main compliance challenges are practical and administrative. The more time you have, the easier they will be to tackle.

5. Understand how your workforce is affected. You may have different responsibilities for different employees.

6. Understand what pension scheme (if any) and payroll arrangements (internal or outsourced) you have. If you do not already have a pension scheme, you will need to put one in place. You must also ensure that your payroll arrangements are suitable.

7. Decide what level of auto-enrolment contributions you want to make.

Do you want to take a “minimum compliance” approach and pay the default minimum contributions and only enrol eligible jobholders? Do you want to maintain your company’s existing arrangements if they meet the requirements?

8. Communicate clearly with your workforce in writing. The Pensions Regulator has templates to help employers get their communications right.

9. Remember to register your scheme with The Pensions Regulator within four months of your staging date. Maintain a clear and accurate record of your ongoing auto-enrolment activities.

10. Remember help is at hand. The Pensions Regulator provides useful guidance for employers. If you currently have external advisers, they may be able to help. There are also a number of specialist consultants who can advise businesses on auto-enrolment compliance.