WYRE FOREST businesses are being warned they must - from now on - make sure they are offering a pension to their staff.

All businesses are now required by law to offer a workplace pension as the two-year anniversary of the new regulations being advertised has passed.

But Sage UK says its research shows that smaller firms are struggling to get to grips with the changes, which have been advertised with the slogan "we're all in".

Jonathan Dowden, Sage UK pensions expert, advised businesses to get informed and plan for auto enrolment of pensions.

He said: "A large number of small business owners have told us they are fearful they will have to take uncompetitive rates for their pension scheme because of their business size.

"The reality is, by starting those conversations early this risk can be reduced.

"An independent financial advisor (IFA), an accountant, and your payroll provider are all go-to ports of call for information."

Other tips from Mr Dowden include making sure that businesses communicate properly with employees about their pensions and using the most up-to-date software.

He added: "By 2018 businesses have to pay a minimum 3 per cent of an employee’s qualifying earnings into a workplace pension, as contributions will ramp-up year-on-year.

"This is much higher than the starting threshold of 1 per cent, so think ahead about how this will impact on your cash flow as a business."

Further information about getting up-to-speed on pension provision is available at www.sage.co.uk/autoenrolment