Payroll is always high pressure – deadlines, deadlines, deadlines. But occasionally, government kindly come up with a diversion from the daily grind, something to challenge us and keep us on our toes.
That’s one way of looking at pension responsibilities, also known as automatic enrolment. Another is: a huge administrative nightmare for business, with the added bonus that it will cost them money!
Of course, it’s got to be a good thing for everyone to start putting away money for retirement. And to be fair, the powers that be have tried subtler methods, carrot rather than stick. However, the carrot didn’t prove juicy enough, and now all employers are being forced to use a big stick to get employees into pension schemes.
As a payroll bureau, we are right at the heart of automatic enrolment. The assessment of whether each employee needs to be automatically enrolled is based on payroll data. The value of contributions is a percentage of earnings – obviously calculated through payroll.
Our payroll bureau software already has most of the answers. We can assess workers, categorise them into eligible jobholders, non-eligible jobholders and entitled worked.
We can set up the pension scheme details and add employees to the right scheme. We can calculate contributions and process the deductions on employees’ payslips.
We can effectively deal with a great proportion of what the employer needs to do.
The aspect causing us to think most about our clients’ needs is the communication responsibility. Our clients are independent of each other and will all have their own approach and solution to automatic enrolment. We need to be sure we can respond to every one of these.
So we’re currently deeply involved with working towards a simple and efficient solution for our clients, one that works in the vast majority of cases. We’re talking with pension providers, our payroll bureau software developers – and of course with clients.
RTI took a lot or work upfront, but the groundwork paid off and so far it has gone fairly smoothly. We hope to make automatic enrolment similarly straightforward for our payroll clients.
Want to find out more? Contact Jennifer Davies: firstname.lastname@example.org