What is auto enrolment?
Auto enrolment is the obligation on all employers to enrol their employees into a pension scheme automatically and to pay money towards their pension. Under the new rules, employers must:
- Provide a qualifying scheme for workers
- Automatically enrol all eligible jobholders onto the scheme
- Pay employer contributions for eligible jobholders to the scheme
- Tell all eligible jobholders that:
- they have been automatically enrolled and
- they have the right to opt out if they want to do so
- Register with the Pensions Regulator and give details of your qualifying scheme and the number of people that you have automatically enrolled.
Who will I need to auto enrol into a pension scheme?
Every employer must automatically enrol workers into a workplace pension scheme if they:
- Are aged between 22 and state pension age
- Earn more than £10,000 a year
- Work in the UK
When do I need to comply with pension auto enrolment?
The date when the law is ‘switched on’ for your business is known as your ‘staging date’. Ideally you need to start looking at the implications and implementation of auto enrolment 12 months prior to this staging date.
To find your staging date, please use the tool on the Pension Regulators website. To use this tool you will need to know how many people are in your PAYE scheme and your employer PAYE reference.
What about our payroll?
Other than introducing the scheme itself the biggest impact on employers will be with their payroll procedures, processes and record keeping.
If you currently manage your payroll system in-house, it may, given the increased compliance and burden of Real Time Information (RTI) and auto enrolment, be appropriate to look at outsourcing payroll.
At Banks BHG, we have a dedicated in-house payroll bureau, PHRS, who offer a comprehensive, confidential and efficient payroll service that is fully RTI and auto enrolment compliant. The use of a payroll bureau can offer the benefits of being more cost effective and give you peace of mind that you are compliant with the new regulations.
As an authorised BACS bureau, we can provide a tailor made service for your business requirements including:
- Electronic payments to your staff and HMRC;
- Employee payslips (electronic or paper);
- Monthly or weekly summaries;
- Departmental reports;
- Dealing with leavers and starters;
- Provision of analysis of staff costs;
- Real Time Information (RTI) PAYE returns to HMRC;
- Processing auto enrolment contributions effectively;
- Fixed or variable rates of pay, bonuses and overtime and the calculation and reporting of all statutory payments – for example SSP, SPP and SMP;
- Directors’ National Insurance, Class1A
- Full end of year service including employee forms P60 and relevant returns to HMRC;
- Completion of CIS returns.
You need never have to worry about RTI, auto enrolment contributions, calculating statutory sick pay or maternity pay again.
Friends of Automatic Enrolment
In January 2016 the number of employers staging for pension automatic enrolment accelerates and will impact payroll service providers hugely. Research by The Pensions Regulator (TPR) tells us that many of those will be expecting their accountants and payroll bureaux to help them with their automatic enrolment duties. If you are an accountant, bookkeeper, IFA, or simply an employer who needs help with auto enrolment, please contact Nicki Goddard-Dady about joining Friends of Automatic Enrolment and attending our support group.
For more information please take a look at:-
- The basics of PAYE helpsheet
- The construction industry scheme helpsheet
- Payroll calculator
Next Step:
If you would like to talk to us about your payroll requirements, have a payroll issue we could help with, or if you want to understand more about auto enrolment or RTI, please contact us .
