Staging dates for Auto Enrolment are getting close – is your payroll ready?
Talking about Auto Enrolment is one thing but having a robust Auto Enrolment Payroll system and software in place to cope with the burden is another.
I’m in no doubt that some smaller businesses won’t be able to cope with the deluge of Auto Enrolment admin that will be a significant drain on resources.
Businesses lack compatible payroll systems, software and the processes required to manage their legal duties. Many also have no clarity about the real costs of Auto Enrolment for each employee on their books
Instead many businesses are still relying on individual spreadsheets, calendar reminders and paper-based admin trails leading to costly mistakes that the unforgiving Pensions Regulator isn’t tolerating.
Experience tells us the answer for every kind of business is a centrally managed payroll system. We’ve invested in such a system. It works with our payroll to provide everything for you.
All you have to do is pick the Pension provider and we’ll do the rest.
Preparation is paramount
The Pensions Regulator is not trying to catch anyone out and has been working closely with Payroll Systems and Software developers to ensure they’re Auto Enrolment compatible.
As part of the process the Regulator is strongly recommending employers prepare systems at least 12-18 months before your Staging Date.
How to choose the right system/software
When you’re stressed out and facing the tightest deadlines reliable technology can be a lifesaver. It’s essential to have the appropriate systems and support in place that won’t let you down during your business critical periods.
The secret to dealing with the complexities of Auto Enrolment is a payroll system or software update that ticks all the boxes detailed below:
|ü Easy to use, training and support 24/7||ü Recording opt-outs, opt-ins and re opt-in previous opt-outs|
|ü Simplifying complex Auto Enrolment tasks||ü Storing accurate records (6 yrs compliance & 4 yrs opt outs)|
|ü Maintaining accurate & compliant records||ü Reports, record keeping, audit trail & online reminders keeping you on track|
|ü Managing ongoing communications with staff and pension provider||ü Generating & issuing Pro forma compliant letters|
|ü Exchanging data easily between payroll and pension provider||ü Allowing use of postponement|
|ü Monitoring the ages and earnings of each staff member||ü Employee access payslips, P60, Pension updates online|
|ü Calculating Pension Contributions for budgeting||ü Managing refunds|
My advice is to update your staff data accurately, choose a system carefully, select the right software and before your staging date … test it!
Each factor is critical for a successful long term outcome and stress free Auto Enrolment.
Long term implications of poor implementation
Without careful preparation and forward planning cracks will appear and your Enrolment processes will start falling apart and could result in:
- staff enrolled at the wrong time
- fines for poor record keeping
- wrong information held or sent to staff and pension’s provider
- wrong amounts paid to staff at retirement.
Discover the real cost of Auto Enrolment for employers.
Employers are talking about the cost implications of Auto Enrolment but not fully grasping the real cost to the business of each employee, particularly smaller businesses.
We believe our clients shouldn’t be penalised for running a smaller business with fewer employees.
From our perspective, at Murrison & Wilson, we’re not only managing payroll for our clients but we use our business and tax planning expertise to identity the real cost of Auto Enrolment for each employee. That is how much each employee costs today and in the future.
If you are looking for an Auto Enrolment payroll solution or requiring help managing employee costs get in touch now on 0141 290 0262 or firstname.lastname@example.org
Until next time.
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