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TPR, NEST & BrightPay Address Common Auto Enrolment Concerns

9th Dec 2016
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BrightPay was recently joined by The Pensions Regulator and NEST for a free auto enrolment webinar. The webinar gave the presenters a chance to address any auto enrolment questions and concerns that attendees put forward. With over 300 employers and accountants in attendance, there were countless questions being asked. Here are some of the most frequently asked question, along with the response given by our panelists.

 

Q:        How do you manage an employee who is already in a pension scheme to which the employer already contributes?

A:         If an employee is already contributing to a pension scheme then you must make sure that it is a qualifying pension scheme. If it is a good quality scheme that meets the criteria then you will have no duties for these employees. However, do not assume that it is an auto enrolment qualifying scheme – you must confirm this with the pension provider. Existing arrangements must meet the qualifying criteria for auto enrolment. If not then existing scheme members need to be enrolled in a workplace auto enrolment pension scheme.

 

Q:        Does a pension scheme need to be set up if all workers are under the threshold, i.e. no eligible jobholders?

A:         No, if there are no eligible employees then you are not required to set up a pension scheme. If a non-eligible employee decides to opt in to a workplace pension scheme then you have 6 weeks to put a pension scheme in place and enrol the employee.

 

Q:        Can I use a pension scheme that is not one of the 17 supported pension providers included in BrightPay?

A:         We do have the ability to create generic pension files by using the ‘other auto enrolment scheme’ option. We are also constantly updating our list of compatible pension providers. If there is a specific pension provider that you wish to use that is not included on the list please let us know and we will be glad to help.

 

Q:        Does auto enrolment apply to single director only companies?

A:         If a company only has one director and no other workers, they are exempt from auto enrolment. These employers must notify the Pensions Regulator which can be done on TPR’s website. You will then receive a confirmation email from TPR. If at any stage the company employs another worker, then auto enrolment will apply to them going forward.

 

Q:        With NEST is it possible to resend your contributions file?

A:         Yes, you can re-send the contributions file as many times as you wish, which will override the workers on a new incoming file. You can also manually amend the information via the NEST web portal before you make a payment.

 

Q:        Why does my pension file keep failing to upload to the NEST web portal?

A:         This may be caused by opening the CSV file in excel, which changes the format of the date fields. There is no need to open the file – simply send it straight through to the pension provider. Better again would be to use the NEST web services integration which is included in BrightPay to send the files directly to NEST.

Another possible reason for your file failing is the pension schedule not matching in both BrightPay and NEST. It is important that these dates are aligned in both systems. BrightPay have released a number of API’s connecting BrightPay to NEST, including one which will automatically check dates and groups in both systems to ensure that they are the same.

 

Q:        If an employee is paid weekly is it possible to pay the contributions monthly or do these have to be paid weekly?

A:         A pension contribution file must be sent to the pension provider each pay period. To make the actual payment, you must log into NEST and click ‘make payment’. This can be done at any stage before 22nd of the following month. Therefore, you can make the payment for these 4 or 5 payments in one go.

 

Q:        What happens if an employer ceases trading?

A:         If an employer ceases trading and they no longer have employees, then they must notify the Pensions Regulator to inform them that they are no longer trading.

 

Q:        If you use postponement when does your re-enrolment date fall?

A:         Re-enrolment falls every three years. You can choose any date three months either side of your staging date to re-assess and re-enrol workers, regardless of whether or not you used postponement.

 

Have you other auto enrolment concerns that are not covered above? Make sure to watch the webinar on demand so that you don’t miss out. Feedback from attendees on the day include ‘very informative and useful webinar’ and ‘fantastic webinar – it’s all a lot clearer now’.

 

BrightPay

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