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Do you understand the legislation?

Do you know your Auto Enrolment Status?

• Zero legislative obligation?

• Exempt status?

• Pending scheme status?

• Assessment only scheme?

• Fully compliant AE scheme?

Auto Enrolment is not optional!

Auto Enrolment legislation was introduced in the Pension Act of 2011 and is a legal requirement for all qualifying businesses.

The Pensions Regulator’s records come from PAYE records held by HMRC who pass them to the Department of Work and Pensions, who pass them to The Pensions Regulator.

Non-compliance is a criminal offence and will incur financial penalties. The worst cases of wilful non-compliance attract a custodial sentence. Many of the fines issued by The Pensions Regulator are for administrative errors and mistakes, but the fines are substantial and a daily tariff up to £500 per day.

When you reach your staging date you must have established your AE status and have a compliant solution in place. Don’t worry, that’s where Enrolex can help.

What is Auto Enrolment?

Enrolex highly trained advisers will ensure your circumstances are assessed correctly and advise the appropriate solution for you

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How do I assess my status?Because the legislation is so complex, most professional advisers suggest you have expert advice to help you with the assessment of your status under Auto Enrolment legislation.

This is a free service. The final decision is made by you, the employer, but must not be taken lightly. The Pensions Regulator hold all payroll records and therefore know who in a business is paid under the PAYE scheme. Decisions as to contracts of employment fall also to the employer. If you are a Director and work in your business i.e. are involved in more than officer’s duties, meaning annual board meetings and companies house compliance, then you may have an implied contract of employment.

Options:

Sole trader or sole Director with no letter from TPR:Zero Legislative Requirement (no action needed)

Sole trader or individual director who have received TPR letter:Exemption Application

Multiple Directors:Exemption, Pending Scheme Status Administration or Pension Scheme required depending on certain criteria – contact us for more information

Directors with employees:Pending Scheme Status Administration or Pension Scheme required depending on certain criteria – contact us for more information

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Workload Comparison?Alternative offerings vs Enrolex solution

Assess your statusUnderstand eligibility criteriaUnderstand postponement process and pitfallsUnderstand different pension scheme optionsChoose earnings basisChoose contribution levelChoose a scheme and providerChoose a communications strategyApply online and wait 3 weeks for acceptance / refusalIf not accepted find another schemeIf accepted, set up the scheme onlineDesign a default investment strategyCreate HR Policy and implementCreate assessment templates Create postponement templateCreate opt in opt out templateNominate your contacts to TPRWork out what to do when employee leavesWork out what to do when employee joinsWork out what to do when employee retiresWork out what to do when eligibility changes occur – pay goes above / below eligibility level, age changes etc.Work out what to do when contribution levels change in 2017 and 2018Work out what to do if you employee wants to pay moreWork out what to do if your employee wants to opt in during post-ponementWork out what to do if an entitled worker wants to make a contributionKnow what to include in pay Know when to change status of employees onlineExplain your system and relevant criteria to your payroll team or accountants payroll team

Set up AE software within your payroll system to make sure they are compatibleEnter eligibility status for employees on online – risk of fineEnsure no coercion of employeesSet up payment system to your chosen pension provider

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Enrolex

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Action - Research, Preparation and Set Up Alternative offerings

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Who does the work?

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Assess all employees every monthPrint out communications every month and send to employeesAdvise employees about what’s happening (FCA regulation and coercion)Create pension report to send to pension providerMake monthly contribution payments – but when?Repeat these stages every pay runRepeat stages for every category change, leaver, joiner, retiree etc. every pay runComplete 7 page declaration on TPR websiteMaintain audit trail for TPR inspectionUndertake ongoing governance of the scheme

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Action - Ongoing Tasks Alternative offerings

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Who does the work?

Which would you prefer?

32 set up processes and 9 actions per payrun or... 2 clicks to set up and no ongoing admin!

Enrolex - the complete Auto Enrolment Solution

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Auto Enrolment, also known as work place pensions, started affecting businesses with fewer than 30 employees from mid-2015. It is being rolled out across the UK until February 2018. From 2016, there are over 118,000 companies per month who need to comply with Auto Enrolment, whether that be by setting up a pension scheme, a pending scheme or applying for an exemption from Auto Enrolment duties.

The Pensions Regulator is sending notification letters well in advance of staging date to highlight the date when Auto Enrolment will affect the business.

This new legislation brings many challenges for business owners:

1. The majority of business owners don’t know enough about pensions to be confident about setting up a scheme or choosing a pension provider 2. Choosing the right supplier is difficult when the complexity of the available solutions takes massive resource to research and compare

3. Although there is a lot of information available to show business owners how to set up a scheme (including 500 plus pages of guidance from The Pension Regulator), most business owners don’t have the time or inclination to trawl through the information to learn how to comply with the legislation

4. The penalties for non-compliance are severe. Should you fail to have a scheme in place by your staging date you will receive a fine of £400 and then fines of up to £500 per day depending on the size of the business. The Pensions Regulator has already issued a large number of fines to businesses who have failed to have a compliant scheme in place on time

The AE Challenge for Business Owners 5. From the assessment of employees to employee communication, Auto Enrolment brings a whole host of on going responsibilities for the business owner and the risk of non-compliance is an ongoing concern. The potential for financial penalties increases for small businesses due to the complex nature of Auto Enrolment and the lack of resource to manage its implementation effectively in-house

6. Employee communication can be a minefield. The timescales allowed for responses are short and the risk of being accused of coercion is high

7. The Pensions Regulator assesses the percentage of employees who opt out and have a team of investigators who will be looking at low uptake

8. The cost of the resource being dedicated to running an Auto Enrolment compliant pension scheme is an additional cost to the business, on top of the actual pension contributions themselves

9. Auto Enrolment compliant payroll software is expensive. Our competitors Fees typically start at £1000 and often include a substantial ongoing monthly fee

Enrolex has been designed to:

• Deal with all of these challenges on your behalf

• Remove the risk of financial penalties

• Remove the need for additional payroll software

• Remove the need for you to learn about pensions

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So, What is Enrolex?Scheme features include:

• Pension provider is Creative Pension Trust

• Government minimum contributions

• Added voluntary contributions allowed by employer and employee

• 3 months postponement as default

• Allows free transfers in

• Allows free transfers out when employees leave

• HMRC Approved Unbundled Master Trust

• Independent Trustees - PAN Governance LLP

• Retirement age 65 but can retire from age 55

• Investment Managers - Scottish Widows

• Funds available include the Default Fund plus 3 other options • Pre Set features include qualifying earnings definition of £5824 to £42385

• Low scheme charges are well within government cap of 0.75%

• Administration and investment management charge (AMC) 0.4% per annum Active member fee from 60p to £2.00 per month

• All charges are deducted from the members personal retirement account

Our research indicated very clearly that most business owners want a basic, compliant Auto Enrolment scheme. Enrolex offers an effective, fully compliant scheme with the minimum of effort and input from the business owner.

Your accountant has analysed the options in the market and has chosen Enrolex as the most appropriate Auto Enrolment scheme for businesses such as yours.

Creating a pre-set scheme is beneficial in many ways:

• There is no requirement for the business owner to become a pension expert or make any decisions

• The set up process is far quicker and therefore cheaper

• The fewer choices there are to make, the less potential there is for mistakes and fines

Compared to a number of other providers, this scheme DOES take transfers in and also allows transfers out when employees leave

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Stage 2: Solution ImplementationYour adviser will arrange an online meeting to set up your scheme or implement one of the other solutions to ensure compliance with The Pensions Regulator.

If you need to set up a scheme, they will do that for you online during your call, it usually takes less than 10 minutes. You will receive an email confirmation which you must click to agree and that’s it!

The system instantly emails you confirmation that your scheme is set up. You’ll also receive a complete suite of documents including HR policies, employer guide and staff information handouts

At the same time your payroll provider will receive an email from the Enrolex system informing them that the scheme is set up and telling them what they need to do with regards your payroll.

All solutions require administration and online compliance with the Pensions Regulator, but Enrolex advisers do this for you, which means you have nothing to do to ensure compliance with The Pensions Regulator.

Stage 1: Initial Contact, Assessment and Nominated Contact ServiceThe majority of our clients are referred to us by their Accountant, which means that our first contact with clients is by way of an introduction.

During our initial conversation we assess your circumstances in terms of Auto Enrolment and how it impacts on you and your business. Our team then show you how the Enrolex solution works and answer any questions you may have.

If you haven’t already got your staging date letter from the regulator we’ll contact them on your behalf and find out when your staging date is to ensure we have your scheme in place well in advance to avoid any fines. If you have received your letter we will help you nominate your contact with The Pensions Regulator. This service is free of charge.

We can implement your Auto Enrolment solution at any time up to 4 months before your staging date, but would advise you to do it as soon as possible to avoid the bottleneck from 2016 where up to 118,000 businesses per month will be trying to set up their Auto Enrolment schemes.

There is no downside to setting up early, you won’t have to make contributions any earlier, it just means that you can be fully compliant and then forget about it. Enrolex also offer a prepayment direct debit system to spread your set up costs

What do we do at Enrolex?

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The Enrolex system will:

1. Assess the workforce to determine who is to be included in the scheme

2. Contact employees to inform them about their status and what that means

3. Employees simply telephone the Enrolex helpline should they wish to opt out

Stage 7: Contributions BeginYour payroll team / payroll provider runs payroll and uploads the information from the payroll software to the Enrolex system. This is a simple process but as always, Enrolex advisers are there to help if required. Enrolex then sends a pension report to Creative Pension Trust who collect contributions by Direct Debit and invest them with Scottish Widows. You don’t have to do anything!

Stage 8: Ongoing Payroll and ContributionsEvery month the payroll runs as normal and the file is uploaded to our system. Enrolex’s system analyses the data and notifies the payroll team / provider of any changes they need to implement before the next payroll run. Joiners, leavers, retirees or changes of category will need to be made on the payroll system before payroll runs as usual.

Stage 3: Direct Debit and Payroll UploadEight weeks before your staging date you’ll receive an email prompting you to set up your direct debit so that contributions can be collected when they are due. Your adviser will be available to help you with this step should you need any support.

Whoever runs your payroll will receive an email and will need to upload your employee details from their payroll software to the system. They’ll receive instructions on how to do this and we’ll provide support should they need it.

Our software works with all known UK software packages without the need for any costly Auto Enrolment upgrades. Your adviser will guide you through this process or work directly with your payroll provider if they run your payroll.

Stage 4: Your staging date arrives and Postponement starts The Enrolex system automatically postpones all employees for 3 months, sending notices directly to your employees if we have their email address, saving you time and money. During this period your payroll team uploads your payroll details without contributions to our system allowing the payroll and contribution dates to align.

Stage 5: Deferment Date Passes and Employee Assessment BeginsAfter the 3 month postponement period employees must have their first assessment. The Enrolex system undertakes this initial assessment and assess employees at every pay period so you don’t have to. At this time Enrolex sends assessment notices to your employees directly if we have their email addresses. If not, Enrolex will send you print ready communications so you can inform your employees about the scheme. Don’t worry, Enrolex’s helpline handles all queries from your employees, not you! 8

6. Access to free advice and support Enrolex offers you and your employees a free advice line

7. A reliable scheme Creative Pension Trust is an unbundled master trust, approved by HMRC. This means you can be sure that if the funds are underperforming the trustees have the right to move the investment, unlike many offerings in the market

8. Saves time, resource and cost Enrolex takes away the hours of research and implementation required with other Auto Enrolment systems. Implementation is just two clicks for the employer, that’s it! Enrolex advisers guide you all the way through the process. Enrolex includes a simple software upload, saving time and effort in the complex area of payroll – it is NOT MIDDLEWARE!

1. Ease of implementation Enrolex is fully automated and manages the entire process from start to finish, our advisers help you from the very beginning and you don’t need to do anything at all, we do everything for you.

2. Competitive fees Enrolex has been specifically created for small businesses. Our service is very competitively priced whilst providing the easiest, most complete solution in the marketplace

3. No need to purchase additional payroll software modules Enrolex works with all known UK payroll software packages, thus keeping your payroll costs to a minimum. If you choose any other system, your payroll provider will have to purchase additional AE modules and pass on those costs to you

4. Removal of financial risk Enrolex reduces the risk of large financial penalties for non-compliance or simple mistakes. We are the only provider to deal with your Declaration of Compliance with The Pensions Regulator

5. Reduced risk of coercion claims from employees Because Enrolex immediately provides the employer with a complete suite of HR documents, communicates directly with employees by email and has an independent source of advice on the helpline, the risk of future claims from employees regarding coercion is vastly reduced

Enrolex: Benefits to Business Owners

To find out more about how Enrolex can help you, your business and your employees, contact us today on 0800 802 1291 or email info@enrolex.co.uk

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Q. I’ve already got a pension scheme for myself / my employees

A. The majority of schemes aren’t Auto Enrolment compliant, however, it is your responsibility to check with your scheme provider, give us a call and we’ll work through your options if it is not compliant

Q. It’s too far away at the moment, I don’t want to do it now

A. There are no downsides to doing it now.

• Bear in mind there will be 6000 businesses per day needing to set up a scheme from 2016, there is no guarantee that you will be able to set up in time if you leave it too late• You may not be accepted by your chosen scheme, if you have only a few employees, not many providers will accept you, which could mean you miss your staging date and getting a fine from the regulators. Enrolex take all businesses regardless of employee numbers

Q. Can I do it my self and avoid paying a fee?

A. Admittedly it is possible for a non-pension expert to do this themselves, however, please consider the following:

• Do you have time to read all the necessary guidance to ensure you set up a compliant scheme?• Making a mistake can be very costly and very difficult to rectify• What else could you be doing in your business if you weren’t spending time and money on setting up a pension scheme?

Q. My employees don’t want to join

A.Be very careful! You shouldn’t be talking at all to your employees about this! The next big PPI type scandal could be my employer stopped me joining the scheme! Because we go direct to the employee it means you can’t be accused of coercion

The other thing to bear in mind is that TPR have all PAYE records now. If they see less than 50% of employees opting in, they could begin an investigation. It makes sense to not even speak to your staff about it. Use the Enrolex guidance information - you receive it the minute you set up your scheme

Q. My business can’t afford this

A. Our fees are the lowest in the market, and our offering is the most comprehensive. Your accountant has researched them all so you can rest easy that we have the best system and the best price for the service. We also offer a spread payment plan to spread the cost of setting up your scheme

FAQs

If you do it now you can forget about it, we do everything else for you, we can even spread your set up costs by using a direct debit if that would make it easier for you

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To find out more about how Enrolex can help you, your business and your employees, contact us today on

0800 802 1291 or email

info@enrolex.co.uk

or visit

www.enrolex.co.uk

Enrolex:Your Complete Auto Enrolment Solution

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