Over the next couple of years it is said that 1.8 million small and micro companies are due to reach their staging date, with everyone having to comply by 2018. We are constantly reminded of Auto-Enrolment by a hairy purple monster, that comforts employers on getting it right. Millions have been spent on this advertising involving TV/radio adverts, there are billboards and constant letters from The Pensions Regulator.
Bearing this in mind I was astonished at a statistic I read the other day from an automatic enrolment survey saying 1 in 10 SME’s plan to ignore these legislation changes, whilst a further 11% are still unaware what the word Auto-Enrolment means.
My first bit of advice would be, know your staging date, you can find this on The Pensions Regulator website, there's even a direct link on our website (www.chrysalispayroll.co.uk) for you under the Auto Enrolment section. You simply type in your PAYE reference number and it will give you the date that you are due to stage. So if you haven’t got it, go do it now! Once you know this you can start to plan on what to do next.
Working previously within a well-established payroll provider, dealing directly with customers undergoing these changes, I have had the opportunity to see how frustrating these changes can be if not implemented correctly, so I cant emphasis enough how important this date is.
Realistically getting prepared for Auto-Enrolment should be done 6-12 months before that important staging date, but if you are reading this and you are due to stage tomorrow, don't panic just give us a call and we are happy to help, there's always a solution.
Your duties as an employer will be setting up a qualifying pension scheme, whether that’s amending your existing one or contacting a provider to set up a new one, it needs to be done, then enrolling all your eligible job holders into this scheme. You may find your company doesn’t have any eligible job holders, so you would think I don’t have to undergo AE. Unfortunately, you do, you still have duties to follow as an employer, you will need to have a scheme in place as you may have workers in your workforce who wish to opt in. Without doing this initial step you could suffer a pitfall of automatic enrolment right at your staging date.
Another thing you are going to have to consider is whether or not your payroll software does the job, is your payroll data substantial enough to give you all the information you need, do you know who these eligible jobholders will be, and is it Auto Enrolment compatible?
As you can see there are many things you need to consider before even reaching your staging date and you do need to be aware of the financial impact it will have on your company. The idea of Auto Enrolment may sound very daunting and feel as if there’s the added pressure to get it right, but don’t worry, there is a lot of help out there, ready to walk you through, and even do it for you.
At Chrysalis Payroll and Accounting Solutions, we aim to take this pressure away from you and give you a stress free solution. We offer an affordable honest service and would even go as far as classing as ourselves as experts in this field.
I have been lucky enough to be involved with Auto Enrolment from the get go. I have had fantastic opportunities within the sector and worked directly with companies who staged from the get go, and have been on-board with them throughout their journey. I have witnessed the pitfalls and the fall over points of this complex legislation and I'm here to help you avoid them.
My first bit of advice would be, don’t be scared, open that letter from The Pensions Regulator and take that first step to getting right. Remember, we are all in and there are many people out there to help.
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