Post on 21-Jan-2018
transcript
1/15/18
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--AutoEnrolmentischanging- Don’tgetleftbehind!NewEmployers,Phasing&AutomaticRe-enrolment
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AutoEnrolmentischanging;Don'tgetleftbehind!
NewEmployers,Phasing&Re-enrolment
ByKarenBennettMarketingManager
atBrightPay
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CPDAccreditedFilloutsurveyattheendofthewebinar
Q&ASessionQuestionsTabor#BPWebinars
Q&A
CPD
OnDemandThissessionisbeingrecorded
REC
WebinarAgenda
AutoEnrolment:What’sthepoint?
AutoEnrolment&New
Employers
IncreasingMinimum
Contributions
Integrationbetweenpayroll
&pensionproviders
Re-Enrolment&Re-DeclarationofCompliance
HowBrightPayAutomatesAuto
Enrolment
IntroductiontoBrightPayConnect
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-AutoEnrolment:What’sthepoint?
AutoEnrolment:What’sthepoint?
• PeoplelivingintheUKarehealthierandlivinglonger
• Majorityofpeoplearenotsavingenoughforretirement
• AutoEnrolmentbroughtintotacklethisissue
• Eligibleemployeesmustbeenrolledintoanautoenrolmentpensionscheme
• Otheremployeeshavetheoptiontooptinorjoinascheme
AutoEnrolment:What’sthepoint?
• Autoenrolmenthaswellandtrulyevolvedsincetherolloutbeganin2012
• 750,000employersreachedtheirstagingdatelastyear
• Finalyearoftheautoenrolmentrollout
• Numberofchangescomingwithinthenext12months
-AutoEnrolment&NewEmployers
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AutoEnrolment&NewEmployers
• Beforenow,astagingdateindicatedthestartofanemployersautoenrolmentresponsibilities
• From1st October2017,newemployerswillbeaffectedbyautoenrolment
49%ofaccountantsdidn’tknowthatnewemployerswouldhaveAEduties
AutoEnrolment&NewEmployers
• Dutiesstartdate:thedatethatyourfirstmemberofstaffstartsworkwhichkick-startswhenyourlegalautoenrolmentdutiesbegin
• EmployersmustbereadytocomplywithAEassoonasthefirstemployeebeginsemployment
AutoEnrolment&NewEmployers
• OnceregisteredasanemployerwithHMRC,anemployermustinformTPRofpointofcontactandchooseasuitablepensionscheme
AutoEnrolment&NewEmployers
• Employeesmustbeassessedtodetermineiftheyneedtobeautomaticallyenrolled
• Eligiblejobholdersmustbeenrolledintoaqualifyingautoenrolmentpensionscheme
• Employer&employeemustmakecontributionstothescheme
• Allemployeesmustreceivecommunicationsinformingthemofhowautoenrolmentaffectsthem
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-Asof1stOctober2017,whenwillnew
employershaveautoenrolmentresponsibilities?-IncreasingMinimumContributions
MinimumContributionAmounts
• Itisanemployer’sresponsibilitytomakesurethattheyarepreparedforthesenewcontributionlevels
• Employerscancontributemorethantheminimum,reducingtheemployeecontribution
Totalmust beatleast(%ofqualifyingearnings)
Employermustcontribute(%ofqualifyingearnings)
October 2012to5April2018 2% 1%
6April2018 to5April2019 5% 2%
6April2019onwards 8% 3%
AutoEnrolment&NewEmployers
• Payrollsoftwareshouldautomaticallycalculatethephasedincreasesincontributions
• Whenofferingautoenrolmentasaservice,itwillbeyourresponsibilitytomakesurethatthecorrectamountisbeingdeducted
• Newemployersafterthesedateswillimmediatelyberequiredtocomplyandimplementthetotalminimumcontributionrate
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-IntegrationbetweenPayroll
&PensionSystems
AutoEnrolment&NewEmployers
• Someprovidershaveenableddirectintegration
• Thisallowspayrollandpensionsystemstocommunicatewitheachother
• EliminatestheneedtoexportandsavethedatafiletothePCandmanuallyuploadthedata
• Withintegration,datacanbesentdirectlytothepensionproviderattheclickofabutton
AutoEnrolment&NewEmployers
• Usefulforbureauswithanumberofclients– reduceserrorsandworkload
• NEST,Aviva&SmartPension
• OtherNESTAPIs– validategroupsandpaymentsources&approvepaymentsfromwithinBrightPay
• StreamlinessetupandongoingtaskswhenusingNEST
-Re-Enrolment&
Re-DeclarationofCompliance
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AutomaticRe-Enrolment
• Dutiesvarydependingonwhetheryouhavestafftoenrol
• Employerchoosetheirenrolmentdatefroma6monthwindow:3monthseithersideofthethirdanniversaryofthestagingdate
• Employerscanalignre-enrolmentwiththecompany’sfinancialyearoravoidseasonalpeaks
• There-enrolmentdateappliestoallstaff&postponementcannotbeused
AutomaticRe-Enrolment
• Atre-enrolment,certainemployeesmustbere-assessed
• Previouslyoptedout
• Voluntarilyceasedactivemembershipofaqualifyingscheme
AutomaticRe-Enrolment
• Youmust enrolanyonewho:
• Leftthepensionschememorethan12monthsbeforere-enrolment
• Aged22tostatepensionage
• Earnsovertheearningsthreshold(currently£10,000perannum)
AutomaticRe-Enrolment
• Youhavetheoption toenrolvariousemployees:
• Directors
• PartnerinaLimitedLiabilityPartnership
• Lefttheschemewithin12monthsofthere-enrolmentdate
• Givennoticeoftheendoftheiremployment
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AutomaticRe-Enrolment
• Theseemployeesmustbeputbackintoapensionschemewithin6weeksofthere-enrolmentdate
• Mustwritetoenrolledemployeestoinformthemthattheyhavebeenre-enrolled
• Communicationmustbecompletedwithin6weeksofthere-enrolmentdate
• Youdonothavetowritetootheremployees
Re-DeclarationofCompliance
• Allemployersmustcompletethere-declarationofcompliance
• Thismustbecompletedevenifnoemployeeshavebeenre-enrolled
• InformsthePensionsRegulatorthatyouhavecompliedwithyourre-enrolmentduties
• Payrollsoftwareshouldbeabletohandlere-enrolment
-HowBrightPayAutomates
AutoEnrolment
SoftwareSolutions
• HMRC&TPRrecommendthatemployersusepayrollsoftwarethatsupportsautoenrolment
• APIintegrationbetweenpayrollandpensionsystemsisalsoadvisable
• HMRCBasicPAYEToolsusers– doesnotproperlyhandleautoenrolment– mostat-riskgroupforAEnon-compliance
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SoftwareSolutions
• Somepayrollsoftwareallowsemployerstoseamlesslyprocessautoenrolment
• Payroll&pensionintegration– NEST,AvivaandSmartPension
• Alertsfornewemployerregardingtheirdutiesstartdate
• Alertsforemployerregardingtheirre-enrolmentduties
• Seamlesslyhandletheincreaseinminimumcontributions
-Introductionto
BrightPayConnect-
NewCloudAdd-On
BureauClientDashboard MultipleUsers SafeandReliable
AutomaticCloudBackup EmployeeSelfservice
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BureauLicence-
BrightPayNewsletter
-Questions&Answers