6. 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.
7. Auto Enrolment Responsibilities
1. Set up a Pension Scheme
2. Staging date – Assess the workforce
3. Communications
4. Declaration of Compliance
5. Ongoing Duties
13. Non Eligible JobholdersEntitled Workers
• Aged 16 – 75, earns £5,824 to £10,000
OR
• 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
14. • 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 £10,000
OR
• Aged 16 – 75, but under 22 or over State
Pension, earns above £10,000
Assessing Employees
15. • 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
16. 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
18. 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
19. Postponement
• Payroll Software must handle
postponement
• Choose a deferral date within
3 months
• Notifications when reach
deferral date
• Postponement
communications
21. 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.
23. 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
24. 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
25. 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.
26. 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
28. 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)
29. 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?
33. 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
34. 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
37. 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?
38. 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
40. In House vs. Outsource
• Make sure to evaluate advantages and
disadvantages of both situations
• Which option will benefit your company
the most?
41. 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?
42. 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?