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Auto Enrolment charges

Auto Enrolment charges

I'm sure this has been discussed many times.

We use NOW for most of our clients auto enrolment's.

We charge a set up fee of £295.00 and then on going fees depending on whether it is monthly or weekly payrolls - ranging from £2.00 per employee to minimum fees of £295.00 (monthly) or £395.00 (weekly).

Well these are the fees on our fixed fee schedule anyway.We only have a handful of clients currently enrolled.

I am reviewing fees and while I feel the set up fee seems fair the ongoing fees seem high to me.  But before I reduce fees (!!) I wondered what others charge just to get a feel for the service.

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04th Mar 2016 13:34

It depends on what you do

 ... but your set-up fee looks low and your payroll fees look very high.

I draw a distinction between the time taken to input adjustments to the payroll (staff paid by the hour, frequent overtime, etc.) and the time taken to process the payroll (produce payslips and reports, file the RTI return, arrange payment of the PAYE, etc.).  I then aim to charge double the payroll processing element for doing the pensions assessment, producing .csv files and uploading them to the pension provider, because I find it takes about the same amount of time as processing the payroll.  For payrolls with no adjustments (fixed salaries), it means that the clients end up being charged twice what they used to be charged for payroll alone.

When more pension providers provide direct access mechanisms like NEST and more payroll providers incorporates the mechanisms into their software, the time taken on extracting, possibly amending and then, uploading the .csv files, will be much reduced, so double the fee would no longer be appropriate.

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04th Mar 2016 13:31

3rd party

Hi

I've outsourced all my AE just because I'm not confident / don't want to deal with all paperwork, employee communications etc.

Still get a 50% split of fees.

Setup fees £300 - you can charge whatver you like though, then monthly £30 or weekly £60 per month.

Providers does everything, I just send payroll info.

One client done his own through NEST but still weants me to do all uploads etc - not sure how much to charge in this case though.

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By robert
04th Mar 2016 14:08

3RD party

Sounds like a good idea any recommendations?

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By Kazmc
04th Mar 2016 14:13

same as Euan

We charge £395.00 plus VAT for setting everything up for the client including the online application, Declaration of Compliance and initial correspondence.

We have then doubled our payroll costs for the ongoing administration as AE is as time consuming (I would say more so at the moment with all the errors flying around on csv files!) as processing the payroll.

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04th Mar 2016 14:46

Thanks...

We have found the opposite.  With NOW and Moneysoft the AE takes no time at all - hence my reason for saying the charges seem high.

Maybe I'll give it a go at these rates and then review.

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09th Mar 2016 15:51

Simply Autoenrolment

Hi Robert

I use Simply Autoenrolment in Bury, can't speak for any others but they've done everything promised so far :)

Speak to Ben see what they can do for you.

If anyone goes this route please mention where you heard their name from :)

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By Matrix
04th Mar 2016 16:20

I have said this on similar threads - you have to price in the risk and responsibility not just the time taken.

My monthly fees are the same as payroll and my set up fees are £500.

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04th Mar 2016 18:09

Apologies for flying off at a tangent, but what is the jusitification for charging less for a weekly payroll than a monthly?  In my experience weekly payrolls generally take longer as they always seem to be hours based whereas monthlies are often hours based, and weeklies tend to have more starters and leavers.

We don't yet have any clients who have staged but our plan is to double the monthly payroll fee, plus a set up fee not a million miles away from those mentioned above.

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By Alex_T
23rd May 2016 16:59

Here is a another thread on this subject https://www.accountingweb.co.uk/any-answers/ae-fees-for-inactive-pension...

I have struggled with this and I'm not quite sure I have my fees 100% correct.
I've signed up for a webinar at the end of the month with BrightPay and Steve Pipe on this subject. Hoping it will help. Might be worth investigating - https://www.brightpay.co.uk/events/1060/

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