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Tech and tailored service to bridge AE gap

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2nd Sep 2015
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In 2016 alone, half a million employers are going to need to auto enrol their staff. That’s more than ever before, says Paul Budgen of NEST.

We know that some may choose to deliver auto enrolment on their own – but a majority are likely to look for help. I’ve written previously for AccountingWEB about the number of employers that say they are going to call on accountants for help with auto enrolment and with The Pensions Regulator’s recent announcement that an additional 500,000 employers will need to comply, the demand on accountants is set to soar.

NEST recently conducted research into auto enrolment and the sort of small employers who are now staging in large numbers. We found that almost two thirds of small employers are looking for a pension provider that offers the flexibility to outsource auto enrolment processes.

Although some employers may want to manage auto enrolment in-house, it’s clear that others want to set it up and then hand over the reins to a third party. There are also those who want to outsource the whole process entirely. What’s important is that these employers have the choice and flexibility to outsource and to do this easily and effectively.

This is good news for accountants because the services outlined above are exactly the sort that they can offer. Some already are. In fact our research shows that 42 per cent of accountants are either currently offering an auto enrolment related service or are planning to do so soon. This is encouraging, but it also means that there are others who have yet to realise just what a golden opportunity auto enrolment could be for the accountancy sector. With 45,000 small and micro employers staging this year, now is the perfect time to consider a proposition fit for your clients’ needs. This might include:

Providing guidance and oversight

Even for clients who want to manage auto enrolment in-house, there may still be a role for accountants. Employers may wish to double-check that everything is running as smoothly as possible. Accountants can be on hand to give guidance on running a workplace pension scheme without spending time on administrative tasks that employers may want to manage themselves.

Helping with regular tasks

Other clients may want to set up their workplace pension scheme themselves and then hand over the day-to-day running to their accountant. This might mean putting together contribution schedules and payments and administer new enrolments and opt outs. For these employers accountants can offer a suite of selected services that your clients can use in a way that meets their needs.

Doing it all

For many small and micro employers, dealing with pension provision might be unfamiliar territory. In most cases there will be just be one person dealing with auto enrolment. They may however want focus on the day to day running of their business. After all, this is often why they went into business in the first place.

For these types of clients, they may look to accountants to manage the whole process. This would involve setting up enrolments, managing statutory communications, contributions and payments. Having a ‘start to finish’ proposition in place could help your employer client feel assured that they will comply with their auto enrolment duties.

Once you have your proposition in place, the next question is, how can accountants manage demand?

Technological innovations

Whichever service clients might ask for, accountants are likely to need robust technology to make sure their proposition is effective, efficient and built for scale. This way they can be prepared for any surge in employer demand without it being too time consuming.

Technological innovation in the pensions industry has come a long way in recent years and a lot of that is thanks to collaboration between the industry and intermediaries. The free online tool NEST Connect is a good example of this. Developed with accountants in mind to help them manage all of their clients in one place, it can help them tailor their proposition to meet the needs of their employer clients.

Now that the number of employers expected to stage by 2018 has increased, it makes even more sense for accountants to prepare themselves for a rise in demand. Making sure their proposition is fit for purpose and backed by strong technology could go a long way to being ready for those clients about to knock on their door.

AccountingWEB has launched the No-one gets left behind campaign to alert as many accountants as possible to the obligations implied by auto enrolment. Read our simple eight-point statement which sets out the auto enrolment facts you need to know.

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