Paul Byrne: Employer duties under Auto Enrolment for Payroll Bureaus

Robin Armer: NEST - Helping make Auto Enrolment work for you

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Paul ByrneManaging DirectorBrightPay

Employer duties under Auto Enrolment for Payroll

Bureaus

Robin ArmerBusiness Development ManagerNEST Corporation

NEST – Helping make Auto Enrolment work for you

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Employer duties under Auto Enrolment for Payroll Bureaus

Paul Byrne

• Accountancy Practice for 20 Years

• Set up own company

• BrightPay Background

• 65,000 customers – UK & Ireland

Agenda

• Small Business Statistics

• Auto Enrolment as a Service?

• Automate Auto Enrolment Duties

• Increase Profits from Auto Enrolment

• BrightPay’s Key Take Aways

Small Business Statistics

Auto Enrolment

All employers must automatically enrol workers into a workplace pension scheme if they:

•Are aged between 22 and State Pension age•Earn more that £10,000 per year•Work, or ordinarily work, in the UK

Objective of Auto Enrolment

Auto Enrolment

Small & micro employers expected to turn to an intermediary

Small & micro employers expected to ask an accountant for help and guidance

59%

74%

Employee automatically enrolled in November 2014

44,053Completed

declaration of compliance

5,000,000th

Auto Enrolment Penalties

2,161

Total Automatic Enrolment cases closed to date

1,316

Compliance Notices Issued

169 Fixed Penalty Notices Issued

Auto Enrolment as a Service

1.2m

Small & micro employers set to stage from June 2015

• Majority of employers will not have the knowledge or experience to make informed decisions

• Information overload - Confused, bewildered and overwhelmed

87%86%

7 in 10 will ask a business advisor for help with Auto

Enrolment

Staging date

Maintain employee records

Identify eligible workers

Pension contribution calculations

87%86%

85%80%

Clients will wait until the last minute to seek advice

• 78% of Payroll Administrators

• 74% of HR Professionals

Automate Auto Enrolment Duties

Uncomplicated AE Duties

• 1 – 2 hours should be sufficient to deal with auto enrolment staging tasks

• Monitoring employees and managing employees who opt in and opt out.

• Some payroll software available monitors the ages and earnings of employees

Payroll Software

• With payroll software - little work involved in the auto enrolment process.

• Staging is the most hands-on task involved

With the right tools, auto enrolment should become a seamless part of the payroll process.

Automation

• Speed of automated tasks offers significant cost savings

• Employers seek assistance very near staging date

Employer Duties

• Employee communication - most challenging part of the process?

• Sophisticated payroll and Auto Enrolment software

• Integration with AE pension providers - key consideration when choosing

Auto Enrolment Functionality

• Additional costs for AE functionality and support.

• Alternative software package that has AE features included and no hidden support charges.

• If changing payroll software, change from the start of the payroll year - avoid mid year complications

Increase Profits from Auto Enrolment

1. Engage with your Clients

• Engage with clients who have not yet staged

• Find out clients’ staging date – the Pensions Regulator's website

• Risk of losing some or all of your payroll clients

2. Avoid Penalties

• The Pensions Regulator continues to enforce fines and penalties for non-compliance.

• Not allowing enough time to plan could lead to your clients being fined

• AE Penalties: £50 to £10,000

• In 2014, The Pensions Regulator fined 169 employers for failing to comply.

3. Open for Business

• Position themselves as open for auto enrolment business

• Outsource to you because you have the know-how and it saves them time and money.

• Trusting you as a payroll professional to make sure they are fully AE compliant with the law.

• Open to the idea of outsourcing AE for a chargeable fee.

4. Payroll Software

• Ensure AE Functionality for the success of automatic enrolment.

• Payroll software can provide the necessary functions to automate the employer admin tasks.

• The Pensions Regulator urges bureaus and employers to check with their payroll provider

• Ensure that it supports the requirements of automatic enrolment.

5. Increase Revenue

• A unique platform to increase profits

• A market of small and micro employers due to stage this year

• Important to capitalise on this window of opportunity

• A number of advantages to offering Auto Enrolment as a Service

By offering AE as a chargeable service, bureaus can:

• Improve productivity for payroll processes

• Enhance client relationships

• Add additional revenue streams

• Provide added value to your existing clients

• Bring new clients on board

• Benefit from a competitive edge

5. Increase Revenue

Streamline Auto Enrolment

Payroll Solutions

• Modern innovative solutions exist that can automate Auto Enrolment duties

• Enter staging date to assess each employee’s eligibility for Auto Enrolment

• Employee AE communications based on each employee’s individual eligibility.

BrightPay

• BrightPay is payroll and auto enrolment software which will enable bureaus to help their clients prepare for their staging dates.

• An all encompassing solution that works to automate and simplify the AE process, making it as easy as possible for you to help your clients achieve compliance.

BrightPay

Unlimited Employers

Unlimited Employees

Free Support

60 Day Free Trial

How BrightPay handles Auto Enrolment

BrightPay’s Key Take Aways

1.Automation

2.Functionality

3.Hidden Costs

4.Timing

5.Communication

Future Developments

Accountants' Portal

Robin ArmerBusiness Development Manager at

NEST

Useful links and resources

• The Pensions Regulator – www.thepensionsregulator.gov.uk/

• The Pensions Advisory Service – www.pensionsadvisoryservice.org.uk/  

• NEST – http://www.nestpensions.org.uk/

• Friends of Auto Enrolment – www.friendsofae.co.uk/

• Accounting web – www.accountingweb.co.uk/

• BrightPay free trial – www.brightpay.co.uk/try/

• Auto Enrolment for Dummies http://bitly.com/1AhNPjX

25th February

• Paul Byrne: 5 Steps to Make a Profit from Automatic Enrolment• Rudi Jansen: How to generate 16 Auto Enrolment Referrals a week through

Linkedin

4th March

• Paul Byrne: Auto Enrolment - Are your Clients Ready?• Kevin Lyon: Auto Enrolment in 2015

18th March

• Paul Byrne: Payroll Bureaus Guide to Profit from Auto Enrolment• Mark Lee: How to STAND OUT from your competition

24th March

• Paul Byrne: Embrace Auto Enrolment to increase profits• Patrick McLoughlin: Using Auto Enrolment to attract your Ideal Clients

25th March

• Paul Byrne: Essential Questions to ask you Payroll Software Provider• Darren Critten: Auto Enrolment - Collaboration is the key to Success!

Questions & Answers

For more information see: www.brightpay.co.uk

Or phone: 0845 3004 304