The UK's 1.2 million firms with fewer than 30 staff still have to comply with the new workplace pensions legislation, but barely one on four is prepared despite the threat of hefty fines.
Over 500,000 firms today reach their "staging date" and have until the end of 2016 to offer automatic enrolment into a pension to their employees, with around 70,000 Scottish SMEs facing compliance over the next two tax years.
But according to a survey of 400 SMEs by workplace provider NOW:Pensions, 27per cent of all businesses yet to stage "haven't given any thought to how they'll find a provider", suggesting some 350,000 firms are still unprepared.
The provider says: "Clearly an underestimation of the task at hand is playing a role in this as over half of those businesses who are yet to stage, don't think they'll have any issue finding a pension provider, and only one in ten are concerned that providers might 'cherry pick' business."
It says a lack of clarity also seems to be playing a role as a third of the SMEs surveyed admitted they didn't understand how auto-enrolment minimum contributions were calculated.
For SMEs with a plan, a quarter intend to seek help from their accountant, 16per cent are relying on their existing scheme provider, and one in ten will search the market themselves.
Morten Nilsson, chief executive of NOW: Pensions said: "Auto enrolment is fast becoming a reality for thousands of firms across the country and there really is nowhere left to hide. Although it's tempting to put it off, auto enrolment is complex and the longer you leave yourself to plan, the easier it will be. Business owners need to wake up to the reality that if they don't get this sorted, they could face fines of up to £500 a day."
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