Auto-Enrolment: Payroll Solution
Helping you meet your Payroll Requirements under the Workplace Pension Reforms.
An employer’s obligations under the Workplace Pension Reforms with regards to Auto-Enrolment will lead to a significant increase in the demand placed on your admin, finance and/or payroll department.
This increase in payroll administration is another unwanted burden for employers but is a facet of the Auto-Enrolment requirements that has often been overlooked.
Mitchell Charlesworth’s Payroll Services team can help to alleviate this significant administrative burden.
Our Payroll Services team are used to managing payrolls with many different types of pension schemes. For them, Auto-Enrolment is an extension to the services that they have provided for decades.
Why will the new Auto-Enrolment requirements lead to greater payroll complexity?
In order to make certain that you comply with the new pension legislation, additional administration will be required to ensure that you routinely assess workers, issue communication and manage Opt-Outs.
Importantly, whoever your Pension Provider is, it's unlikely they will have a complete solution for you that includes payroll administration.
Not all pension providers will manage communication to workers. Some will use a “single pass” payroll extraction after each payroll run to provide the complete package whilst others suggest a second pay run to be processed once they have worked out the contributions using software often referred to as ‘Middleware’.
Importantly, it must be noted that pension providers each have their own unique way of assisting with some or all of these administrative tasks. Importantly, they all require data extraction from payroll on a run by run basis to provide any support.
How can our payroll team help you?
Mitchell Charlesworth’s Payroll solution is based on the assumption that we will use a “Single Pass” basis where our payroll software will process the Core Activity compliance aspect of Auto-Enrolment.
The core Auto-Enrolment activities:
- Applying assessment to categorise workers at duties start date
- Assessment of subsequent starters
- Re-assessment of existing employees where income or age increases
- Reassessment 3 years after duties start date
- Processing Worker Postponement, Opt-Outs, Refunds and Opt-Ins.
Mitchell Charlesworth are able to offer all of the above immediately using our payroll software.
Pension contribution upload:
At the end of each pay cycle, whether weekly or monthly, data is required to be uploaded to the pension provider detailing the contributions and worker status of each member.
Our payroll services department can assist you in generating a data file that can be uploaded to your pension provider systems. Alternatively, we may be able to handle that process on your behalf.
Managing employee communication:
It is your obligation to inform workers on a timely basis of any postponement, assessment status as and when it changes and to notify workers of their options such as Opt Out or Opt In by either email or letter.
Depending on the level of pension provider support, they may be able to handle worker communication on your behalf, from the regular upload that you complete. For those employers using Pension Provider software to handle communication separately, they may require a Secondary File from payroll.
As your payroll provider, Mitchell Charlesworth can handle employee communication on your behalf, generating standard letters for you to pass to your worker.
Payroll service requirements:
The level of Payroll support you require depends on your chosen pension provider.
Mitchell Charlesworth’s Auto-Enrolment services are therefore split between Core Activity Solutions and Ancillary Services:
Core activity payroll solutions:
1. One off activity:
- Implement Auto-Enrolment Payroll Processes ahead of duties start date
- Apply pensionable and assessable criteria to existing data
- Test payroll run ahead of duties start date.
2. Recurring payroll activity:
- Ongoing maintenance of Core Auto-Enrolment Payroll Activities in each pay period
- Continuous Assessment of entitled workers, non-eligible jobholders and starters
- Processing Opt-Out notices, Opt-Out refunds and Opt-In requests
- Handling Postponements
- Reporting; worker categorisation, postponements, contributions upon pay run.
3. Data files:
- File production of “Single Pass” data for each pay run.
Bespoke data file production and reporting
You may require the “Single Pass” data file in a specific format. This may be to upload direct to your pension provider, HR Software or an employee communication tool.
If we do not have your file format to hand, we can liaise with our Software provider to meet your requirement. Once designed, we can add the production of your Bespoke Single Pass data file into your Core Activity.
As Auto-Enrolment progresses our service will develop to streamline the flow of information direct between our software and various pension providers.
If your pension provider does not offer a communication facility or you do not wish to maintain the employee communication aspect by using the standard reports we provide as part of the core activity, Mitchell Charlesworth can produce ongoing worker communication on your behalf, for you to pass to your workers.
Should you have any queries or would like further advice about meeting your Auto-Enrolment obligations, do not hesitate to contact Ashley Bellis or our other Auto-Enrolment specialists to the right of this page.