Does the thought of doing your own Auto Enrolment processing fill you with dread?
At the Dales Payroll Service we can take away the worry and hassle of getting it right.
Below we summarise how we can help you fulfil your Auto Enrolment obligations.
Introduction to Auto Enrolment Processing for Employers
Pension auto enrolment starts for your business payroll at your staging date.
It’s far and away the biggest ever change to payroll systems, in particular because it involves individuals and their pay. The more you look at it the more it could become a nightmare and a worry.
The good news is that we’re here to make your transition to auto enrolment simple and easy under our experienced guidance. We have handled this very successfully and we’re up to speed. We fully support you, indeed we do all the work we can on your behalf.
What Needs Doing
a.) You decide who your pension provider of a qualifying scheme will be – we recommend deciding this at least six months in advance of your Staging Date.
We are not licensed to advise you on choosing a pension provider, however, you have three broad options:
- you yourself decide,
- you use a financial advisor you know
- or you pay for a specialist who handles this subject.
There is some guidance on The Pensions Regulator’s site Choose a Pension Scheme
b.) Set up your pension scheme and advise all your jobholders – we handle this area subject to the note below
Assess all employees (see below for more details) to determine what duties you will be responsible for, deciding if the worker is: Eligible, Non-Eligible, Entitled according to the legislation
- Communicate with all employees with different letters according to the three categories above
- Enrol all eligible employees
- Provide information to those not eligible – another legal requirement in a prescribed format
- Give enrolment information to the eligible jobholder, including advising of the right to opt out
- Arrange active membership for the eligible jobholder
- Register with the Pension Regulator
- Communicate with your pension provider to set up your employees – name, address, date of birth, NI number etc. Note: If you choose Nest. NOW or The Peoples Pension then we handle the whole process.
- Deal with your enquiries
c.) Ongoing check and process all employees for pension auto enrolment at every payroll run – we handle this
- Deal with new employees enrolling to the scheme – as relevant tasks above
- Handle opting out instructions
- Recognise employees who become eligible or need auto enrolling because their age or salary (see below) has changed to trigger a requirement
- Communicate each month all the relevant payroll data to your pension provider
- Deal with queries from your pension provider
- Deal with your ongoing enquiries
|Date||Employer minimum contribution||Total minimum contribution|
|Staging date up to 31 March 2018||1%||2%|
|1 April 2018 to 31 March 2019||2%||5%|
|1 April 2019 onwards||3%||8%|
There may be tax relief of 20% on the employee’s contribution depending on the pension provider chosen. Also, the minimum you must pay these percentages is on the qualifying earnings, which is per month:
|Pay reference period|
|2016 – 2017||month|
|Lower level of qualifying earnings||£486|
|Earnings trigger for automatic enrolment||£833|
The above is not exhaustive and is for guidance only and you should consult your accountant or other professional adviser before taking action on any of the above. See the Disclaimer