What is Auto Enrolment?
What is Auto Enrolment?
Auto Enrolment is a set of duties to make sure all eligible employees automatically become members of a qualifying pension scheme with a high enough level of contributions.
This means new responsibility for the employer such as:
• Workforce assessment
• Provision and Auto Enrolment into a qualifying scheme
• Facilitating opting out and refunds
• Record keeping
Under Auto Enrolment the employer must contribute towards their employee’s pension scheme and the minimum contribution amounts for both the employer and the employee are being phased on gradually.
Why is it being introduced?
• People are living longer and are likely to sustain a longer retirement.
• Many people are not saving for their retirement at all, and many who are saving, aren’t saving enough.
• The Pension Act has introduced measures to encourage greater private saving.
• The rollout of these measures commenced on 1st October 2012, targeting larger employers first.
Did you know?
• Only 32% of employees are currently in a workplace pension.
• 7 million people are saving too little or not at all.
• 750,000 employers offer no pension.
• Under saving and longer life-expectancy mean government will not be able to keep state pensions at their current level in the longer term.
• Up to 8 million employees are expected to be auto enrolled.
Why do I need a Payroll software solution?
Regardless of whether you’re a small business with no in-house Payroll expertise, a medium or large size business that does, as an employer you are required by law to keep records of pay, tax and National Insurance contributions. Failure to keep accurate records, or for employers who do not retain records for long enough, may be charged a penalty.
Workplace pension law is changing. You’ll soon have new legal duties to help your workers save for retirement. The responsibility for complying will rest with you, the employer.
Sage 50 Payroll gives you the confidence that you’re paying the right person, the right amount of money at the right time – automatically working out payment and deductions, including tax, national Insurance, pensions and sick pay.
Who would use Payroll software?
In a small business environment the task of paying employees is often undertaken by the business owner or is allocated to somebody else within the business such as an Office Manager or Administrator who may have limited or no experience of how to calculate tax and NICs. As a business grows the likelihood of a fully functioning payroll department or full-time payroll role increases.
What are the benefits to using Payroll software?
• Save time and reduce errors with automatic calculation of PAYE, NIC and statutory payments
• Keep up to date with legislative compliance
• It gives complete control over paying your employees and submitting information to HMRC
• It provides easily accessible and up to date information
• It gives the ability to analyse information and make informed decisions about staff costs.
Start preparing for Auto Enrolment with Sage 50 Payroll
Preparation is key. From creating an action plan, to forecasting your costs, it’s important you start preparing now, with Sage 50 Payroll: Auto Enrolment Edition.
Sage 50 Payroll allows you to create action plans, calculate costs of Automatic Enrolment and keep track of preparations in the Pensions Centre:
• Enter your staging date into the Pensions Centre and create your personalised Action Plan based on
The Pensions Regulator’s best practice
• Set up your pension quickly and easily with Fast Track Pensions
• Understand the cost of Automatic Enrolment to your business
• Create reminders to keep everyone up to date with what needs to be done and export to Outlook, iCal and other calendars
• Access all of the Automatic Enrolment information you need in the best format for you; using “show me how” and learn from video clips as you work
• Keep track of your Automatic Enrolment preparation progress
http://www.youtube.com/watch?v=RP9PD7UiIDE&feature=youtu.be
