the essential guide to automatic enrolment for employers
TRANSCRIPT
By Paul Byrne
The Essential Guide to Auto Enrolment for Employers
Q&A SessionQuestions Tab or #BPWebinars
CompetitionTwo BrightPay 2015/16 licences
Q&A
WIN
Paul Byrne
• Accountancy Practice for 20 Years
• Set up own company
• BrightPay Background
• 65,000 employers – UK & Ireland
Auto Enrolment Overview
Staging Assessing Employees
Enrolling Employees
Option of Postponement
Handling Opt-outs and Refunds
Supporting Employee
Communication
Recording and Providing Reports
Integration with various
Pension Providers
Payroll Software
BrightPay Demo
Process AE in house or
outsource
Agenda
..Auto Enrolment Overview
Auto Enrolment
• Government initiative – Save for later life
• Rolled out in stages: Oct 2012 – Oct 2018
• All employers required to offer a workplace pension scheme to eligible workers.
Auto Enrolment Responsibilities
1. Set up a Pension Scheme
2. Staging date – Assess the workforce
3. Communications
4. Declaration of Compliance
5. Ongoing Duties
Staging Dates
Staging Date
Staging Date
• Letters from the Pensions Regulator
• Find out your staging date here: http://bit.ly/1EuooiJ
Assessing Employees
Entitled Workers
Non Eligible Jobholders
Eligible Jobholders
Assessing Employees
Non Eligible JobholdersEntitled Workers
• Aged 16 – 75, earns £5,824 to
£10,000OR
• Aged 16 – 75, but under 22 or over State Pension, earns above £10,000
• Aged between 22 and State Pension
age
• Earn more that £10,000 per year
• Work, or ordinarily work, in the UK
• Aged at least 16 and under 75
• Earn the lower level of earnings or
less
• Work, or ordinarily work, in the UK
Eligible Jobholders
Assessing Employees
• Aged between 22 and State Pension
age
• Earn more that £10,000 per year
• Work, or ordinarily work, in the UK
• Aged at least 16 and under 75
• Earn the lower level of earnings or
less
• Work, or ordinarily work, in the UK
Entitled WorkersNon Eligible Jobholders
• Aged 16 – 75, earns £5,824 to
£10,000OR
• Aged 16 – 75, but under 22 or over State Pension, earns above £10,000
Assessing Employees
• Aged at least 16 and under 75
• Earn the lower level of earnings or
less
• Work, or ordinarily work, in the UK
Entitled Workers
Assessing Employees
Assessing Employees
• Must be monitored at each pay period
• Ensure you have the correct tools in place
• BrightPay – assesses employees and notifies you if an action is required
Option of Postponement
Postponement
• Option to postpone for up to 3 months
– Temporary rise in earnings
– Align assessment dates
– Contractual workers
• Does not mean no responsibilities
• 6 weeks to issue communications
Postponement
• Payroll Software must handle postponement
• Choose a deferral date within 3 months
• Notifications when reach deferral date
• Postponement communications
Opt Outs & Refunds
Opt-out’s & Refunds
• Employees have the option to opt out
• If within 30 days of being enrolled, they are entitled to a full refund.
• Opting out is the employees choice, not the employers.
• Payroll Software must be able to process opt-out request and refund contributions made.
Employee Communications
Communications
• Employee communications is an important employer responsibility
• Must write to each employee depending on their employee category
• Eligible jobholders, non-eligible jobholders, and entitled workers each have different rights and entitlements
Communications
• Eligible jobholders – automatically enrolled, contribution rates, option to opt out.
• Non-eligible jobholders – have the option to be enrolled, employer must contribute
• Entitled workers – can join the scheme, employer does not need to contribute to the scheme
Communications
• Postponement – additional communications duties
• Already part of qualifying pension scheme –let them know they are not affected
• Time limits in place to give employees sufficient time to make decisions
• Make sure the right information gets to the right employee at the right time.
Communications
• Employee communications – very time consuming when done manually
• Software solution – easily produce interactive, personalised letters
• Choose your software with caution – not all providers offer communications features
• BrightPay – automatically produces, ready for printing / emailing
Recording and Reporting
Record Keeping
• Keep records of Auto Enrolment compliance
• Employers must keep:
– Records about jobholders and workers
– Records about your pension scheme
• Records must be kept for 6 years (except opt in requests)
Reporting
• Ask your payroll software provider about reporting features
• Can you choose information you want to see?
• Does it allow you to save report templates?
• Is it possible to open multiple reports side by side?
Integration with Pension Providers
Integration with Pension Providers
• Ensure pension provider integration when choosing a payroll software provider
Payroll Software
Payroll and AE Software
• Choose payroll software which is specifically tailored to auto enrolment
• Check with payroll provider and test software ahead of the staging date
• Streamline auto enrolment, reduce your workload
Payroll and AE Software
• BrightPay – an easy to use payroll and Auto Enrolment solution
• Automate the process, allowing you to save time and money
• With BrightPay, Auto Enrolment is easy
• Makes the process effortless and uncomplicated
How BrightPay handles Auto Enrolment
Process In-House or Outsource
In House vs. Outsource
• Process AE in-house or outsource to a professional?
• Weigh up the advantages and disadvantages
• Do you have the time, staff resources, and software resources required to deal with AE?
• More efficient to outsource to a payroll bureau or accountant?
Processing In-House
Advantages
• Keep control within the company
• No expensive outsourcing costs
• Correct tools makes it easy
Disadvantages
• Need to invest in payroll software
• Research payroll solutions
• Increased workload
Outsourcing
Advantages
• Experienced, skilled professional will manage the process
• Reduced workload
• Don’t need tools and resources
Disadvantages
• Lose control of the process to an external source
• Outsourcing costs
In House vs. Outsource
• Make sure to evaluate advantages and disadvantages of both situations
• Which option will benefit your company the most?
Does Your Payroll Software...
1. Assess your workforce?
2. Allow the use of postponement?
3. Automate employee communications?
4. Calculate pension contributions?
5. Handle opt-in and joining?
Does Your Payroll Software...
6. Handle opt outs and refunds?
7. Notify you when actions need to be taken?
8. Keep records and provide reports?
9. Have any hidden charges?
10.Integrate with multiple pension scheme provider systems?
BrightPay can...
Useful links and resources
• The Pensions Regulator – http://bit.ly/1lyZA0p
• NEST – http://www.nestpensions.org.uk/
• NOW: Pensions – http://www.nowpensions.com/
• BrightPay Free Trial – www.brightpay.co.uk/try/
• BrightPay Demo Request – http://bit.ly/1H30vPA
Recommendto a friend!
Don’t forget to...
Questions & Answers