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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