Auto-Enrolment Payroll Services
Sovereign Payroll offer auto-enrolment payroll services as standard – including consultancy and advice, as well as administration of company auto-enrolment.
What Is Auto-Enrolment?
Workplace pension laws are changing. Beginning with the largest employers, all companies who employ staff within certain parameters (mainly focused around age and salary level) will need to ensure that they offer employees the opportunity to pay in to a pension pot – in addition, employers will also need to make a contribution to their employees pension pots.
Although auto-enrolment will make it easier for your employees to save for their retirement, it also creates a large amount of administration for businesses – particularly those which see a large amount of staff turnover. Sovereign Payroll Services offer specialist, expert advice and guidance on all the issues related to auto-enrolment and we can even manage your employee and company contributions to a selected fund on your behalf. If you have not yet selected a pension scheme, we are happy to work with you to select one which is most appropriate to your organisation and those it employs.
What Does This Mean For My Company?
According to the Centre for Economics and Business Research, small businesses (1-4 employees) face an average cost to implement systems to deal with the new pensions legislation of £8,900. This rises for businesses with increasing numbers of employees.
The date for auto-enrolment varies depending on the size of an organisation – if you would like to find out yours, the government has provided a free service to do so, which you can access here. When your company is eligible to begin making contributions to its employees, there are several key points which need to be considered, these include:
- Having the ability to be able to perform a ‘draft’ payroll in order to calculate the gross qualifying earnings used to assess your workforce and their eligibility to make auto-enrolment contributions;
- Communicating your auto-enrolment policies and processes to employees;
- Registration with the Pensions Regulator and keeping records of payments and contributions;
- Tracking non-eligible workers within your workforce to ensure those who are not currently eligible for auto-enrolment because of earnings or age, are included when they do qualify;
- Tracking those employees who opt out of auto-enrolment to make sure they are re-enrolled after a specified period (currently three years);
- Refunding any contributions made by an employee who chooses to opt out within the designated ‘opt out period’.
If you would like to speak to have a no obligation discussion with a member of our specialist auto-enrolment team, please feel free to contact us through our contact page to discuss your organisation’s specific situation and requirements.