Auto enrolment, are you ready?

Auto enrolment, are you ready?

Although auto enrolment staging has been happening for around a year and a half we are now moving into the phase affecting companies with 250 employees or fewer.  The impact of this is many more organisations than ever before will find themselves trying to cope with this legislation.  Almost all will need to change operational processes, many will need to change payroll systems, and some may just not have a clue what to do or where to begin!  In their latest blog, one pensions provider states that those who have been through staging are just the tip of the, proverbial, iceberg. The largest employers went first in an attempt to ease in the process.  However the largest employees in schemes to date reportedly only collectively make up 3 million employees from 10,000 companies. Between now and the end of the staging process a further 30,000 organisations need to establish suitable processes to assess, and where appropriate enrol, all their employees.

Managing opt outs is thought to be trickier for smaller operations than larger businesses and, whereas larger employers probably have the staff to deal with the issues or can simply outsource, smaller businesses might be concerned about the additional costs.  When it comes to running the assessments workplace pension auto enrolment isn’t a one off check of all employees, it needs to be a continual process.  Every time payroll runs the eligibility of employees, not already enrolled, needs to be checked.  Every time someone is opted in there has to be a process to deal with their opt out (if chosen).  Opt out communication needs to be worded correctly and be impartial - anything that could be seen as inducing opt out may be deemed something the employer could be fined for.  When an employee opts out that employee has to be re-assessed after three years, in accordance with legislation. It’s a lot for a smaller employer to cope with in house.

What can help is outsourcing payroll to a company like Safe who know how to process employee data correctly for pension auto enrolment.  Safe processes auto enrolment processes within the payroll solution negating any need for third party ‘middleware’ to make the assessment.  Safe offers two service options: - a fully managed payroll provided by Safe Outsourcing or a software as a service (SaaS) model using Safe’s flagship payroll product Safe EMS.  Both of these options are charged on a pay as you go basis, helping smaller businesses budget for and manage costs.  Safe integrate with Now:Pensions and Nest pension providers (and many other providers too), who can help businesses establish a suitable scheme and provide the legally compliant and suitably impartial employee communications necessary.  

Speak to Safe about how they can help your business on 0844 583 2134, email info@safecomputing.co.uk, or visit www.safe-ems.co.uk or www.safeoutsourcing.co.uk to find out more.

Save yourself the burden of legislation

 

Save yourself the burden of legislation

 

Recent years have seen many businesses have struggled as legislation surrounding payroll continues to grow. Operationally, keeping on top of it all is tiresome. In smaller businesses resources can be stretched, trying to comply with the ever growing law of directives. 

 

The introduction of pensions auto enrolment has been rolling out in stages for a while now for larger employers. This year sees the smaller and medium enterprises hit with this new legislation, which they will now need to be able to cope with. Last year real time information came into effect. The combinations of these two new legislation pieces have made many employers switch to outsourcing, when they hadn’t necessarily considered it an option before. 

 

As well as ensuring compliance, a cost saving can be made by outsourcing, as instead of stretching internal human resources, outsourcing means using another company’s team to run your business payroll activities. Ultimately this frees your company’s resource, either to leave the business, or more often, to be reassigned to focus on more core business tasks. 

 

Outsourcing can bring further benefits. Service level agreements can be set prior to utilising the service. These SLAs could mean measuring aspects that either hadn’t been possible to measure or hadn’t been thought of as measurable before. 

 

Let’s face it, times change. Legislative changes surrounding HR will continue to occur in the future, if not from our government directly, than from directives cascaded down from the European Union. Further legislation will build further complexity to payroll operationally, and require increasing amounts of management in terms of resource. By far the easiest way to save the burden and enjoy economies of scale cost savings is to outsource. 

 

To see how a supplier of outsourcing services can help you to outsource your payroll, visit www.safeoutsourcing.co.uk and click on the ‘enquire online’ link, email info@safeoutsourcing.co.uk, or call 0844 583 2134.

 

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