Auto-enrolment is the term for the automatic enrolment of employees into workplace pension schemes. By 2018, all businesses must operate a pension scheme for qualifying employees, with employee and employer contributions. It’s called ‘automatic enrolment’, because it is automatic for staff – they don’t have to do anything to be enrolled into a pension scheme. Whilst 2018 may seem a long way off, the Centre for Economics and Business Research (CEBR) is predicting that SMEs will face set-up costs of up to £28,300 per business to meet pension auto-enrolment requirements. They also estimate that it could take businesses up to 103 working days to implement, therefore it is vital to start planning as soon as possible.

Here at Frost Wiltshire we are encouraging small employers to undertake a review of their payroll procedures to ensure that they understand the changes in law, on workplace pensions. Under the changes introduced by the Pensions Act 2008, every employer with at least one member of staff now has new duties; these include enrolling staff members who are eligible, into a workplace pension scheme and contributing towards it. Since the introduction of automatic enrolment, five and a half million employees have already been put into a scheme by the UK’s large and medium employers, but the vast majority of small employers have yet to reach the date their automatic enrolment duties start – this is called their ‘staging date’. During 2017, around half a million small and micro employers will reach their staging date. For many of these employers, meeting their new workplace pension duties represents a cultural change – it will be the first time they have provided a pension for their staff. Employers can choose to implement automatic enrolment themselves, but many will decide to ask their accountant or payroll provider to help them with some or all of their duties.

At Frost Wiltshire, we understand that many small employers are concerned about what they need to do to in order to comply with the law. We can help employers avoid non-compliance by assisting with issues that may arise from the introduction of auto-enrolment, as well as general payroll matters. Employers who need to set up a pension scheme should have one in place at least six months before their staging date. The scheme selected needs to be suitable for automatic enrolment and suitable for their employees. Due to the penalties that can arise for non-compliance, it is essential for employers to understand exactly what is required of them. We recommend getting your plans together as early as possible before your staging date to make sure you’re fully prepared.

How can we help?

We can assist you with:
Identifying who will be affected – and who will need to be auto-enrolled.
Communicating with your staff – as to how they will be affected.
Planning for your staging date – to ensure your payroll is ready for auto-enrolment.
Selecting the appropriate pension advisor – based on your requirements/people.
Explaining the financial impact of auto-enrolment – on your profit/cash flow.
Advising on salary sacrifice – and how you and your staff could benefit from salary sacrifice schemes such as employee benefits.

Together, we can offer an all-encompassing solution to include payroll processing, the on-going administration of auto-enrolment, advice on salary sacrifice, employer savings, and the implementation of a pension scheme compliant with the auto-enrolment legislation. To discuss how we can help your business with auto-enrolment, please contact us on 0117 304 8455.