Auto Enrolment - Employing seasonal or temporary staff

With Christmas fast approaching, now is the time that companies start employing seasonal workers, to help with the increased work load.  This is great for companies who are looking for a short term solution to the increased pressure that is Christmas, but if you are an employer, there is one thing you need to consider, and that is Auto Enrolment.

If you employ seasonal or temporary staff you must assess the worker individually every time you pay them, no matter how many hours they work.  

Whilst assessing these members of staff there are a few things to consider before you automatically enrol them into the pension scheme if they qualify, these are as follows; 

• They may qualify for the pension scheme and then leave employment with yourselves shortly afterwards.
• Their earnings will regularly change due to the hours they work with you.
• What should you as an employer contribute into their scheme.

The temporary staff will be assessed and treated the same as any other permanent staff member, whether they qualify to be enrolled into the scheme is still dependant upon their age and how much they earn.  Any staff member aged between 22 to state pension age who earns over £192 a week, £833 a month must be automatically enrolled into a qualifying pension scheme which you must pay into. 

The Pensions Regulator has created a seasonal and temporary staff tool to work out what legal duties will apply to you and what you'll need to do.  It's a brilliant tool so if you are struggling I would advise to have a look.

There are also numerous things that can help when you are assessing staff.  
 
Payroll software

Having the right payroll software can really help if you have seasonal or temporary staff, or staff with fluctuating hours and earnings on a regular basis.  Although most payroll software that is set up for Automatic Enrolment requires and extra add on to your subscription, which can sometimes be costly, there is some software out there that is it inclusively built in.

Most payroll software that is set up for automatic enrolment will assess staff at each pay cycle, calculate contributions where necessary, and some also have a postponement function built into it.

Pension Schemes

Pension schemes may also offer services that could help you.  Some can help you to assess employees and will also calculate both employee and employer contributions.  You may have to write to your staff individually about the changes that are due to happen, but some schemes may also help you with them.  You can find more information on choosing a pension scheme by clicking the link.

Using postponement
If you aren't sure on how long your temporary staff will be working for you, or you know they are only staying for a short period of time, The Pensions Regulator will allow you to delay the enrolment of that worker for up to three months. This is called postponement.  

If you have a temporary staff member that is eligible to be enrolled into the pension scheme as they hit all the specific criteria, you can choose to apply an eligible postponement.  This means you will delay the enrolment period for up to three months.  Allowing you to then assess them again after that three month period is up.

 A letter must be sent within six weeks from the date after postponement starts to notify them of this, you must write to staff individually to tell them that you are postponing them and how automatic enrolment will affect them, giving them the option to opt in.  

This means during any staff member’s period of postponement, you won’t need to put them into a pension scheme unless they expressly ask to be put into one.

You can find out more about using postponement on the Pensions Regulator website. 

Outsourcing Auto Enrolment 

If all this still sounds very complicated for you as an employer, you do also have the option to outsource Auto Enrolment.  There are many bureaus out there who would be happy to take Auto Enrolment of your hands.  The prices of these bureaus vary, and with Automatic Enrolment being law, bureaus know that employers have to undergo these duties and that employers will be turning to professionals for help.  

Here at Chrysalis payroll we are different from any other bureau, we understand that Auto Enrolment can sometimes be difficult and that you have no way of avoiding it.  That is why we offer our Auto Enrolment outsourcing solution completely free.  There are no set up fees and no processing fees when taken out with our payroll service contract. 

We will undergo all your Auto Enrolment duties for you, from the individual letters you need to send, to your Declaration of Compliance,  If you want more information on the services we offer you can find us at www.chrysalispayroll.co.uk 

You can also email info@chrysalispayroll.co.uk or call 0191 673 0062 to speak to one of our Auto Enrolment specialists today.