Does anyone have a template for including auto-enrolment work into a client engagement letter please?
These are for either payroll clients or full service (eg bookkeeping, accounts, payroll, co sec) clients where they require help in implementing AE. Will obviously not be advising or choosing on scheme provider but will be doing pretty much everything else for them.
Thanks
Tracy
Replies (39)
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hje - Please may I have a copy? I am putting an AE proposal to clients this week so getting organised.
Would it be possible...
...for someone to please PM me with the engagement letter?
Thanks in advance.
Help please!
Would be much appreciated if someone could let me have a copy too....
Many thanks
Stephen
AE Engagement letter
Are these engagement letters still available? If anyone can send me a copy it would be much appreciated.
Thick
HJE has now removed their comment / offer. Do people still commenting honestly think they will still send them?
@cheekychappy
And your comment of 'thick' is plain rude.
If anyone wants a copy please pm me and I will be happy to send over the copy that HJE kindly sent me.
Could each recipient send on one copy?
Maybe the first person to receive it could send it on to the next, who could sent it on to the next etc etc. If so, I'll have one please.
Here is the text
I'll add a small disclaimer in that this is simply a copy and paste from the document supplied earlier. I have had no hand in writing this. As such I am not responsible for its contents.
Payroll Services – auto enrolment
This letter is designed to be suitable where the agent provides payroll services to the client. If such services are not provided, but the client requires the agent’s assistance with the auto-enrolment process, this letter should be tailored, in particular with regard to the recurring compliance section.
Initial set up
1. You are responsible for establishing the staging date applicable for your payroll. You will advise us if you bring forward, postpone or otherwise delay any aspect of your staging. We will assist you in establishing the staging date that applies. This is the date that you, as an employer, must start to auto enrol your workers.
2. Using the data supplied by you in order for us to prepare your payroll [delete if not applicable], we will identify those individuals who would qualify as a ‘worker’ for auto enrolment purposes and will produce a list of them. We will send you this list together with the definition of a ‘worker’ and if required and requested Pension Regulator guidance on how to assess workers earnings and if the worker in under a UK contract. You should review this definition for any individual not included on the payroll records, and inform us of any changes.
3. We will help you to establish which category each worker falls into, whether entitled worker, eligible jobholder or non-eligible jobholder.
4. You will choose a pension scheme that meets the automatic enrolment qualifying criteria and we recommend that you take appropriate independent advice. Your choice of scheme can be:
· The existing scheme used by the business if it is an eligible scheme for auto-enrolment;
· Through the National Employment Savings Trust (NEST);
· Or you can seek the advice of a financial adviser on a suitable pension scheme
[We will not provide advice on the choice of a scheme, but refer you to guidance issued by the Pensions Regulator on pension scheme selection.][S1]
5. You are responsible for providing the required statutory information to your workers.
6. You will enrol all eligible jobholders into an eligible pension scheme on the appropriate date. We will assist you with this process [delete if not required]. If required, we will prepare and send to you for distribution a notice for each eligible jobholder telling them that they have been or will be enrolled, and setting out what that means for them, and also detailing their right to opt out (and to opt back in again). We will send information about the eligible jobholders to the pension scheme. (For eligible jobholders who are already active members of a qualifying scheme, we will prepare a notice for you to send them giving them information about the scheme. This is the only action required for such members).
7. If required, we will prepare and send to you a notice to send to each non-eligible jobholder that sets out certain information about opting in to an automatic enrolment scheme and what this means for them. They do not need to be automatically enrolled but have the right to opt in. If the non-eligible jobholder chooses to opt in, you will enrol them onto the scheme on receipt of an opt-in notice. We will assist you with this process. [Delete if not required]. We will send information to the pension scheme about those non-eligible jobholders who choose to opt in.
8. If required, we will prepare and send to you a notice to send to each entitled worker, giving them information about joining a pension scheme and what it means for them. You will arrange membership to a scheme for those entitled workers who choose to join and complete a joining notice. This can be a different scheme to the one used for auto enrolment. We will assist you with this process. [Delete if not required].
9. You are required within five calendar months of your staging date to make a declaration of compliance with the Pensions Regulator. If required by you in writing to assist we will on receipt of the scheme information from you, and the pension scheme provider, assist you in making the declaration with the Pensions Regulator.
Recurring compliance work
10. As part of the preparation of your UK payroll for each payroll period we will:
a. Calculate the deductions to be made from each worker’s pay
b. Calculate the contribution you as employer are obliged to make to the scheme
c. Process through the payroll any refunds from the scheme
11. We will include the pension payments on the following documents:
a. The payroll summary report showing the reconciliation from gross to net for each employee and all relevant payroll totals
b. The payslips for each employee (unless payslips are not required)
c. A report showing your total pension contributions (employees and employers) and due date for payment
12. You must re-enrol eligible job-holders every three years. We recommend that you establish a process for this review. We believe a review of the workforce who have ceased membership of the scheme or who have opted-out three years from the staging date, and every three years thereafter with a view to re-enrolling opted out eligible jobholders if they are still eligible for auto-enrolment, would suffice. We will assist you with this review by providing at the outset a document detailing the requirement. At the time of the review, if required and requested by you, we will prepare a notice for you to give to the eligible jobholder telling them that they have been enrolled, and setting out what that means for them, and also detailing their right to opt out (and to opt back in again).
Ad hoc and advisory work
13. We will also provide such other taxation ad hoc and advisory services as may be agreed from time to time. These may be the subject of a separate engagement letter, at our option. Where appropriate we will discuss and agree an additional fee for such work when it is commissioned by you. Examples of such work include:
· dealing with any enquiry from the Pensions Regulator
· preparing any amended records which may be required and corresponding with the Regulator as necessary
Where specialist advice is required on occasions we may need to seek this from or refer you to appropriate specialists
Changes in the law
14. We will not accept responsibility if you act on advice previously given by us without first confirming with us that the advice is still valid in light of any change in the law or your circumstances.
15. We will accept no liability for losses arising from changes in the law or the interpretation thereof that occur after the date on which the advice is given.
Your responsibilities
16. You are legally responsible for:
ensuring that your payroll and pensions records are correct and complete; and
making payment of pension contributions on time
Failure to do this may lead to automatic penalties, surcharges and/or interest.
17. You will keep and retain the records required by law. These include:
Records about jobholders and workers: eg name, date of birth, National Insurance number, gross earnings, contributions, gender, address, status within the pension scheme, opt-in notice, opt-out notice and joining notice
Records about the pension scheme: eg employer pension scheme reference, scheme name and address and other information in respect of specific pension schemes
18. You are responsible for choosing an eligible scheme and for regularly reviewing its suitability.
19. You are responsible for providing all relevant information to the trustees or managers of the Pension scheme within the statutory period.
20. You are responsible for the monitoring of workers age and earnings and agree to advise us on any change in categorisation or status of your workers.
21. You are responsible for monitoring opt-in and opt-out requests and where workers with the right to opt-in or opt-out exercise that right. If required and requested by you we will assist you in providing appropriate information for you to provide to the jobholder.
22. To enable us to carry out our work you agree:
to provide full information necessary for dealing with your workers’ pensions: we will rely on the information and documents being true, correct and complete and will not audit the information or those documents;
to agree with us the name[s] of the person[s] authorised by you to notify us of changes in employees and in rates of pay. We will process the changes only if notified by that/those individual[s];
to advise us in writing of changes of payroll pay dates;
to notify us at least [x] working days prior to the payroll date of all transactions or events which may need to be considered in relation to auto enrolment obligations for the period, including details of:
· all new workers and details of their remuneration packages
· all leavers and details of termination arrangements for all workers
· changes in categorisation or status of your workers
· all opt-in and opt-out requests from your workers
· all remuneration changes for all workers
· all pension scheme changes
23. You will keep us informed of material changes in circumstances that could affect the pension scheme, workers and deductions. If you are unsure whether the change is material or not please let us know so that we can assess the significance or otherwise; and to authorise us to approach such third parties as may be appropriate for information that we consider necessary to deal with your affairs.
24. If the information required to complete the services set out above is received less than insert numberdays before the payroll date we will still endeavour to process the payroll to meet the agreed payroll date but we will not be liable for any costs or other losses arising if the payroll is late in these circumstances. We may charge an additional fee of insert amountfor work carried out in a shorter time period.
25. Our services as set out above are subject to the limitations on our liability set out in the engagement letter and in paragraphs 42 to 47 of our standard terms and conditions of Business. You should read this in conjunction with paragraphs 62 and 63 of our standard terms and conditions that exclude liability to third parties. [To be inserted only if you wish to attempt to limit liability].
[S1]Amend if the Practitioner is willing and qualified to provide selection for a company.
Please can everyone who downloads HJE's letter ...
... give him a 'thanks' vote (bottom of the post).
Dropbox
version can be downloaded from:
https://www.dropbox.com/s/oi56eq26emenugy/Auto%20enrolment%20LoE.docx?dl=0
As ever, please be aware this is a generic template and will need to be tailored to your requirements. Apologies for the delay in replying, am neck-deep in payrolls, NMW changes, auto enrolment and juggling a half-dozen pension providers.
IRIS PAYROLL SERVICES HAVE NUMBER OF THESE STANDARD LETTERS - I AM TOLD.
IF YOU ARE ONE OF THEIR CLIENTS THEN PROBLEM SOLVED.