Pension Auto Enrolment
Throughout the UK all employers, regardless of size, must ensure that they automatically enrol their employees into a qualifying pension scheme. This is termed Auto Enrolment and is being introduced gradually with all employers staged by April 2017. The Pensions Regulator has sent out letters informing employers of their ‘staging date’ and action needs to be taken if your staging date is within the next 12 months. These are the questions you need to answer in readiness:Do you know your staging date?Do you have a ‘qualifying’ scheme in place?How will you enrol your employees?What payroll software will you use and is it compliant?Do you have the internal resources to manage the process?
Payroll plays a significant role in the Auto Enrolment (AE) process and it is very important that your payroll software has the functionality that will deliver the information required. Here at DTE Payroll & Tax Centre, we have the software available to provide the data required by the employer, employees and the pension providers.
The key element of Auto Enrolment is the “Assessment of Employees”. Some pension providers and/or providers of “middleware” are suggesting that they will undertake this process, but this will complicate the processing of payrolls as you will need to run the payroll, send information to the 3rd party and await their response informing you of who to enrol. The decision point for auto-enrolment of when an employee has to join a pension scheme is also the start contribution point in real time and passing this information through to a third party will result in doubling the payroll processing time and costs as the payroll will be required to be processed twice for the same period which is not viable. This is a very good reason for considering outsourcing your payroll to DTE where we have the functionality within our payroll software that will handle the Assessment process allowing you to:
- Set an existing or new pension policy as a Qualifying Pension Scheme
- Assess the workforce to identify eligible and entitled employees
- During the payroll run automatically enrol any eligible jobholders who are not already in a qualifying pension scheme, based upon earnings and age at that point in time.
- Deduct employees and employer contributions
- Manage “Opt Outs”, “Opt In’s” and Postponements
- Keep payroll related records in relation to each qualifying pension scheme and each employee.
- Provide reports that can be used to furnish information for pension providers
This will provide a fully compliant solution to payroll for Auto Enrolment and will ease the additional workload Auto Enrolment will undoubtedly cause to each and every employer.
Should you wish to discuss your payroll and/or AE requirements further please contact Sarah Nicholson, Payroll Manager, on 0161 767 1213.
“As a care home provider, we require a company to deal with our payroll very efficiently and quickly and our…Read More Read More
SYLVIE RADFORD - Foresight Residential Limited.VIEW ALL TESTIMONIALS
Foresight Residential Limited.
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