The Future of Auto Enrolment for Bookkeepers Presented by Karen Bennett at ICB Bookkeepers Summit 2017 For more information visit https://www.brightpay.co.uk

1. -
Auto Enrolment: This is what you
must know this year

2. -
Auto Enrolment: This is what
you must know this year
By Karen Bennett
Marketing Manager
at BrightPay

3. Webinar Agenda
Auto Enrolment:
What’s the
point?
Auto Enrolment
& New
Employers
Increasing
Minimum
Contributions
Integration
between payroll
& pension
providers
Re-Enrolment &
Re-Declaration
of Compliance
How BrightPay
Automates Auto
Enrolment
Introduction to
BrightPay
Connect

4. -Auto Enrolment: What’s the point?

5. Auto Enrolment: What’s the point?
• People living in the UK are healthier and living longer
• Majority of people are not saving enough for retirement
• Auto Enrolment brought in to tackle this issue
• Eligible employees must be enrolled into an auto enrolment
pension scheme
• Other employees have the option to opt in or join a scheme

6. Auto Enrolment: What’s the point?
• Auto enrolment has well and truly evolved since the rollout began
in 2012
• 750,000 employers to reach their staging date this year
• Final year of the auto enrolment rollout
• Number of changes coming within the next 12 months

7. -Auto Enrolment & New Employers

8. Auto Enrolment & New Employers
• Before now, a staging date indicated the start of an employers
auto enrolment responsibilities
• From 1st October, new employers will be affected by auto
enrolment
49% of bookkeepers didn’t know that new
employers would have AE duties

9. Auto Enrolment & New Employers
• Duties start date: the date that your first member of staff starts
work which kick-starts when your legal auto enrolment duties
begin
• Employers must be ready to comply with AE as soon as the first
employee begins employment

10. Auto Enrolment & New Employers
• Once registered as an employer with HMRC, an employer must
inform TPR of point of contact and choose a suitable pension
scheme

11. Auto Enrolment & New Employers
• Employees must be assessed to determine if they need to be
automatically enrolled
• Eligible jobholders must be enrolled into a qualifying auto
enrolment pension scheme
• Employer & employee must make contributions to the scheme
• All employees must receive communications informing them of
how auto enrolment affects them

12. -Increasing Minimum Contributions

13. Minimum Contribution Amounts
• It is an employer’s responsibility to make sure that they are
prepared for these new contribution levels
• Employers can contribute more than the minimum, reducing the
employee contribution
Total must be at least
(% of qualifying earnings)
Employer must contribute
(% of qualifying earnings)
October 2012 to 5 April 2018 2% 1%
6 April 2018 to 5 April 2019 5% 2%
6 April 2019 onwards 8% 3%

14. Auto Enrolment & New Employers
• Payroll software should automatically calculate the phased
increases in contributions
• When offering auto enrolment as a service, it will be your
responsibility to make sure that the correct amount is being
deducted
• New employers after these dates will immediately be required to
comply and implement the total minimum contribution rate

15. -
Integration between Payroll
& Pension Systems

16. Auto Enrolment & New Employers
• Some providers have enabled direct integration
• This allows payroll and pension systems to communicate with
each other
• Eliminates the need to export and save the data file to the PC
and manually upload the data
• With integration, data can be sent directly to the pension
provider at the click of a button

17. Auto Enrolment & New Employers
• Useful for bureaus with a number of clients – reduces errors and
workload
• NEST, Aviva & Smart Pension
• Other NEST APIs – validate groups and payment sources &
approve payments from within BrightPay
• Streamlines setup and ongoing tasks when using NEST

18. -
Re-Enrolment &
Re-Declaration of Compliance

19. Automatic Re-Enrolment
• Duties vary depending on whether you have staff to enrol
• Employer choose their enrolment date from a 6 month window:
3 months either side of the third anniversary of the staging date
• Employers can align re-enrolment with the company’s financial
year or avoid seasonal peaks
• The re-enrolment date applies to all staff & postponement
cannot be used

20. Automatic Re-Enrolment
• At re-enrolment, certain employees must be re-assessed
• Previously opted out
• Voluntarily ceased active membership of a qualifying scheme

21. Automatic Re-Enrolment
• You must enrol anyone who:
• Left the pension scheme more than 12 months before re-enrolment
• Aged 22 to state pension age
• Earns over the earnings threshold (currently £10,000 per annum)

22. Automatic Re-Enrolment
• You have the option to enrol various employees:
• Directors
• Partner in a Limited Liability Partnership
• Left the scheme within 12 months of the re-enrolment date
• Given notice of the end of their employment

23. Automatic Re-Enrolment
• These employees must be put back into a pension scheme
within 6 weeks of the re-enrolment date
• Must write to enrolled employees to inform them that they
have been re-enrolled
• Communication must be completed within 6 weeks of the re-
enrolment date
• You do not have to write to other employees

24. Re-Declaration of Compliance
• All employers must complete the re-declaration of compliance
• This must be completed even if no employees have been
re-enrolled
• Informs the Pensions Regulator that you have complied with
your re-enrolment duties
• Payroll software should be able to handle re-enrolment

25. -
How BrightPay Automates
Auto Enrolment

27. -
Introduction to
BrightPay Connect

28. -
New Cloud Add-On
Bureau Client Dashboard Multiple Users Safe and Reliable
Automatic Cloud Backup Employee Self service

30. -
Bureau Licence

31. -
50% off bureau licence & free BrightPay Connect
* Offer is available to new bureau customers for the first year subscription and is applicable to 2017/18 licences only.

32. -Questions & Answers