Auto Enrolment Services
Auto Enrolment means monitoring and making changes EVERY payroll run
We are able to provide a range of enhanced services designed to assist all of our clients meet their statutory obligations towards Auto Enrolment. Payroll Service Direct will assist you every step of the way from establishing your staging date to recommending a pension provider and working directly with them.
As an employer you have over 30 responsibilities towards auto enrolment. They broadly fall into the following four categories.
1.Assessment of your workforce. – Employers must assess their workforce continuously by taking into consideration the employees age, earnings and place of work. They must be classified into 3 categories, “eligible jobholders”, “non eligible jobholders” and “entitled workers”.
2.Inform all employees by issuing prescribed information – Each of the categories of worker has to be issued with information relating to their status of pension membership. Information must be communicated initially, when a worker changes category or if they have “opted out” every three years.
3.Process the Opt Outs and Opt Ins – “Eligible jobholders” must be enrolled in a pension scheme. They will be able to “opt out” if they want to. If they decide to “opt out” then the decision will be revisited every three years. Non-Eligible Jobholders may “Opt In” to a pension scheme and if they do the employer must contribute too. Entitled Workers can also “Opt In” but the employer does not need to contribute to a pension scheme. All records in relation to your payroll and pension provision and administration must be kept for up to six years.
4.Invest the contributions and process the payroll– Employers must do the following
- Identify and choose a pension scheme that meets the auto enrolment requirements.
- Select a default fund or investment where contributions will be made for employees who do not express a preference.
- Reconcile all employee and employers contributions to the payroll and pay the pension provider.
- Update the payroll in readiness for the next run.