LEBC Group has backed the Chartered Institute of Payroll Professionals’ (CIPP) call for employers to seek advice on auto-enrolment as fines from The Pensions Regulator for non-compliance can be more costly than enrolling itself.

Recent research from the CIPP showed that 69 per cent of businesses, so far have encountered additional costs due to auto-enrolment.

LEBC divisional director group savings and investment Glynn Jones, said: “Auto enrolment is the biggest item on Payroll professionals agenda with clients. Whilst most payroll agents and bureaux are not pensions advisers they are the skilled resource to best ensure compliance with the legislation. Cost is clearly an issue but payroll and bookkeepers are generally helping their employer clients get and stay compliant having invested in systems to enable.

“Employers need to ensure that they use a creditable, sustainable pension provider and would be advised to stay away from smaller master trusts.”

A spokesperson for TPR said: “We want to ensure all employers can comply with the law without risking a fine. The penalties were set by parliament at a level that ensures there is no incentive for an employer simply to pay a fine and not comply. Instead the opposite is true; there is no financial benefit in not complying.

“Our focus is on education and helping employers to get this right and compliance rates remain very high. We urge employers to read the letters we send them and to use the duties checker on our website. Investing five minutes to understand how the law affects them and what they need to do and when will help avoid an unnecessary fine.”

In the last three months of 2014, TPR issued 166 fixed penalty notices, (£400 fines) for AE non- compliance and issued 1,139 compliance notices to employers in the year.

The fine for small employers, with one to four employees, who fail to comply with escalating penalty notices for AE from the TPR is £50 a day and £500 per day for those with five to 49 staff members.

Share Story: