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Auto-Enrolment Services

Auto-Enrolment Services

Payroll pensions & auto-enrolment services are difficult processes to manage at the best of times. Business owners are responsible for enrolling employees into an automatic pension scheme and applying the necessary deductions. These deductions have to then be paid over to a pension provider.

How Our Auto-Enrolment Services Work

Before we can start enrolling your employees and submitting the necessary documentation, we need to assess the situation. If a previous accountant has provided you with auto-enrolment services, we will need to check what actions have been completed so far and what needs to be done.

The next step is to check your staging date. This is the date when you are legally obligated to comply with auto-enrolment. Each company is different, but for most, it will be the date the payroll started to operate.

Now we know your staging date, we need to determine which of your employees should be enrolled into the auto-enrolment pension scheme (see criteria below)

Once we have determined which employees must be enrolled and which are ineligible, we will need to perform the necessary actions to implement the scheme into our payroll software.

This will let us keep track of your employees and monitor any changes in their auto-enrolment.

Our software will then produce auto-enrolment letters that need to be distributed to your employees. We can forward these over to you, or distribute them ourselves with the appropriate permissions from your staff.

Now that auto-enrolment services have been taken care of within our software and on your employees pay documents, we need to set your scheme up with a pension provider. This will involve submitting documents, payroll information and employee details.

Once completed, you will then be ready to start making payments for your auto-enolment deductions.

The final stage of our auto-enrolment services is to submit your declaration of compliance. This declaration provides the Pensions Regulator with information about your business and its auto-enrolment situation, Ensuring you are compliant.

This declaration must be completed within 6 months of your staging date.

Who's Exempt From Auto-Enrolment?

Some indiviudals or business owners may be exempt from auto-enrolment duties following certain criteria.

If your business is exempt from auto-enrolment, you ill need to inform the pensions regulator by giving the a call, or using their online form

You can find a list of criteria below to determine your exemption:
  • Your company only pays its director with no other staff
  • Your company has been dissolved
  • If a director does not have an employment contract
  • Employees earning less than £10,000 per year
  • An employee has handed in their notice
  • They've received a 'winding-up lump sum' in the last 12 months

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    What is Auto-Enrolment?

    Auto-enrolment is an automatic pension scheme that works alongside a businesses payroll scheme. Its operates around an 'automatic' process that will enroll any employees into the pension scheme providing they fit the set criteria; known as a qualifying employee. All employers in the UK are legally required to comply with auto-enrolment and apply it to their payroll scheme An auto-enrolment accountant will often use payroll software to keep track of a businesses employees.

    The government introduced auto-enrolment back in 2012 following a concern that UK employees were not saving enough for their retirement. Both the employee and employer will pay contributions based on your paydates and pay these over to your pension provider.
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    Who Does Auto-Enrolment Apply To?

    Auto-enrolment applies to UK businesses that operate a payroll scheme. Even if your employees are exempt, or do not wish to contribute, necessary steps must still be taken. Within this scheme, both the employee and employer must pay contributions towards a pension scheme for qualifying employees.

    For an employee to qualify for auto-enrolment, they must meet a set of criteria. The employee must be of state pension age (22) and earn at least £10,000 per year. There is a lower earnings limit of £6,240 where the employee can join voluntarily. For a more detailed breakdown, you can use the table below.
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    What Do We Have To Contribute?

    The employee, if enrolled, will pay minimum contributions of 5% on qualifying earnings. Employers will also contribute to your pension scheme by providing at least 3% of the same qualifying earnings. Both these amounts can be increased if you wish to do so. Qualifying earnings include wages, commissions, bonuses, overtime, SSP, and parental leave.

    It is the employers duty to then pay these contributions over to your pension pot.
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    Auto-Enrolment Compliance

    The legislation for auto enrolment is strict, and must be carried out for all employees. Employers must comply with the rules presented, failure to do so can result in daily penalties of up to £500! We understand that most business owners can be overwhelmed with pensions, and so we make sure to offer a precise and reliable auto enrolment service to keep you compliant.

    We ensure all employees are dealt with accordingly by enrolling them or marked exempt as applicable. We will submit any necessary documentation to your pension provider so they are aware of your situation and understand who is enrolled and why.

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    Reporting to pension provider

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    Auto-enrolment compliant

    Necessary documentation

    Letter distribution

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    How We Can Help With Auto-Enrolment Duties

    As any auto-enrolment accountant will tell you, there's a lot to do; submitting delcarations, monitoring employees pay, age, and calculating contributions. Our auto-enrolment services relieve you of the regulatory stress. We will process your pension contributions on your behalf, submit any documentation required by governing bodies and even distribute any documents to your employees (following permission).

    You can rest assured that your payroll is left in safe, and trustworthy hands. Making sure that you are fully compliant with all obligations.

    Document distribution

    Opting-in & out employees

    Determine eligible workers

    Calculating contribution amounts

    Maintaining AE records

    Submitting declarations

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