What Tasks Does a Payroll Need to Carry Out for Auto Enrolment?
Workplace Pensions have been with us for a while now, and the process for employers for getting it all underway is called auto enrolment. This can be a time consuming and complicated process when it comes to the payroll, especially for the hundreds of thousands of micro and small businesses (up to 40 employees) who often don?t have dedicated HR or finance departments to manage the process for them.
This article looks at some of the auto enrolment tasks that a payroll needs to carry out. If you?re not certain that your payroll software (or outsourced payroll service provider) is up to these tasks , then we can help.
Auto enrolment payroll tasks for payrolls
These are the main tasks that a payroll needs to undertake in the auto enrolment era:
- Identify those members of staff that you’ll need to automatically enrol.
- Hold all of the information that is needed for automatic enrolment. This includes staff names, addresses, dates of birth and earnings and is important so that your payroll system pays the right amount of pension contributions for the right people at the right time.
- Calculate how much you as the employer will need to pay for each staff member and how much each staff member will need to pay.
- Automatically generate and send the correct staff data ? including information on pension contributions ? to the chosen pension provider in the correct format.
- generate communications (e.g. letters or emails) for your staff at the right time ? although you may choose to do this yourself using our template letters, particularly if you only have a small number of staff
- Handle staff requests to opt into or join your workplace pension scheme, whilst also stopping deductions and processing refunds for staff who opt out of it, as they are entitled to do.
- Your software must keep records for up to six years.
Our Outsourced Payroll Service can help with your Auto Enrolment
If all this sounds a bit complicated and possibly even confusing, then we can help. As outsourced payroll specialists, we know all about the requirements of an auto-enrolment optimised payroll. We can even help you find a pension provider.
If you need help with your auto enrolment payroll, contact us or call us on 0121 422 0550 for a free initial chat.