5 tips for sorting your auto enrolment out the smart way
Most of us are looking at our professional commitments for the second half of 2017 and wondering where we can make changes and improvements. The rest of this year and into 2018 is going to be about automation and finding ways to get repeatable processes carried out quicker and more efficiently.
Employers may be looking at how they can make savings on future or current outgoings that do not return value and accountants may wish to simplify their processes , save time and concentrate on more profitable work. Auto Enrolment fees are certainly an expenditure ripe for a rethink. With so many more businesses due to stage this year, combined with all those businesses still searching for an auto enrolment policy they can really get behind, we felt that these five problem areas make the case for talking to AEclipse and not getting bogged down in Auto Enrolment.
If you have staged already we might be able to save you money or save you time , or if you have missed your staging date we can get you back on track and speak to the Pension Regulator on your behalf.
1 - Technology changes - Use the latest technology -
Auto Enrolment is about processes. It's fiddly, cumbersome, it takes time and brings with it an endless series of dates and deadlines. With many smaller companies still reaching their staging date, the importance of streamlining monthly admin commitments is obvious. The rest of 2017 will be the year of saving time through automation. The AEclipse platform is one such option. You can read more about how we help our clients here but it's worth remembering, don't let the technology you are currently using dictate your auto enrolment choices.
2 - There are lots of hidden fees - Check the small print on your chosen pension scheme before it goes live -
There are many schemes out there, some that have additional fees and costs to the business or the staff . It's more than wise to check the hidden fees of your chosen scheme. If your criteria is to use the cheapest scheme, make sure it actually is the cheapest. Many schemes carry up front fees or ongoing admin fees for the life of the scheme , payable by either the employer or the staff, and sometimes both. If you are looking to work out which scheme offers the best fit for your business you can follow our free decision tree and suitability generator to help educate you on the various schemes or you can call our friendly team.
3 - It's unavoidable and straight off the bottom line - budget for it -
Budgeting for auto enrolment makes sense. This is the case whether you are thinking about hiring new staff, or whether you are yet to stage but know added costs are on their way. But, how do you know exactly what to budget for? Well, you know to look out for each pension scheme's hidden costs, but what about the cost of actually dealing with your chosen provider? If you do your own payroll you should check how much it will cost in add-ons to make your payroll software integrate with your chosen provider. Sometimes this is costly and long winded. Likewise, if you plan to do all the ongoing requirements yourself, how confident are you of getting it right? Do you really have the internal resources to handle the responsibility? The Pensions Regulator issues fines in an increasing number and with County Court judgments also recently introduced, you need to be sure you can you do it properly and still run your business.
4 – Opt outs, opt ins and staff queries - do you really want the hassle?
Time is, ultimately, money. Do you need the hassle? There are legislation changes scheduled for April 2018 and 2019. With so many things to taken into account already do you really want to add staying on top of changing legislation to your list of responsibilities? Would you rather make yourself responsible for dealing with your staff's individual queries, or would you rather provide them access to a dedicated person who deals with auto enrolment all day every day? If your business has a high turnover of staff, the administration alone will be significant.
5 – Record keeping and compliance - don't fall foul of The Pensions Regulator -
An employer must keep certain records to demonstrate ongoing compliance. These records keeping processes will have to be built in to existing processes. This may or may not be simple, but is it work the risk? Would it be easier to outsource all of this responsibility to AEclipse so that our automated platform can ensure deadlines are not missed and you can run your business with the knowledge that all of your compliance duties have been taken care of. Ask yourself, do you want a good scheme for the business and the staff? Do you want low costs and to be able to run your business knowing there is a specialist taking care of you? Let us talk to you about being your auto enrolment partner.