A Simple & Automated Approach to Auto Enrolment That Actually Works For Profit
There is a huge amount of uncertainty surrounding the changes to workplace pension’s law for employers. Small businesses will be concerned about what is involved for them and their employees. According to research carried out by the Pensions Regulator, just 59% of small and micro businesses due to stage in 2016 are even aware of their staging date.
The regulator handles thousands of queries about auto enrolment every month with the top three queries encompassing employer duties, declaration of compliance and staging dates. Further research indicates 78% of small businesses will look to their bookkeeper, accountant, payroll bureau or advisor for advice.
Employers unprepared for Auto Enrolment
A massive 1.2 million small and micro businesses are due to reach their staging date within the next two years. Payroll advisors are more than aware that the majority of these employers will not have the knowledge or experience to make informed decisions when it comes to their auto enrolment obligations. With a vast quantity of information available, employers are fast becoming confused and overwhelmed as to what their responsibilities for auto enrolment actually are.
For the majority of these employers, this will be their first experience to review any kind of pension scheme for their employees. The fact also remains that many employers lack the capacity and ability to handle these additional payroll tasks. For many employers, implementing any new system can be a daunting and scary experience to grasp.
Opportunity for Payroll advisors
Payroll bureaus need to decide if they are ready or prepared to take on auto enrolment business. With many shying away from offering this as an extra service, bureaus will need to determine what kind of information and support they will offer to help their clients comply with these new auto enrolment duties. Advisors will find that a large portion of these employers will contact them very close to or even after their staging date.
In addition, clients will have an expectation that their payroll providers will present this auto enrolment advice in a way that is easy to understand, relevant and actionable. Bureaus have a short window of opportunity to position themselves as experts in this ever increasing cluttered space. The experience and expertise of payroll bureaus can help employers understand what they need to do to be fully auto enrolment compliant.
A Simple & Automated Strategy that Works
Payroll bureaus that want to succeed in this competitive industry will need to predict the evolutionary needs of their clients. It is imperative to establish themselves as a proactive rather than a reactive auto enrolment advisor. Bureaus will naturally increase their profits by providing this commodity where they can orchestrate the necessary level of service in exchange for an initial set up fee, plus a monthly retainer to manage the ongoing auto enrolment duties.
Additionally, if these bureaus offer other services such as bookkeeping, tax returns, audits, management accounts, etc. they will have a new platform to reach and upsell to this new audience. You will find employers will be happier to consolidate all of their outsourcing services to one person or advisor.
With a combined payroll and auto enrolment solution in place, bureaus will benefit from greater efficiency, increased value and improved cost savings. BrightPay is an easy-to-use auto enrolment solution that has everything you need to provide a profitable auto enrolment service to your clients. Through BrightPay’s bureau package you can benefit from unlimited employers, unlimited employees and unlimited support.
BrightPay Key Take Aways
Be Ready: Be prepared to ensure you are a credible authority on all employer auto enrolment duties and obligations.
Auto Enrolment: Make sure you have the correct software and systems in place to prepare your clients easily for auto enrolment. Be aware that some payroll software packages will only partially handle auto enrolment.
Costs: Be aware of hidden costs when researching auto enrolment solutions. You need to think about any limitations when it comes to the number of employers or employees.
Customer Support: Support can be a function that payroll bureaus forget to consider. Confirm that support costs are included or inexpensive with your chosen solution.
Open for business: Be proactive and inform your clients that you are open for auto enrolment business.
Download Guide here
Improve the Profitability of Your Bureau Service Today
BrightPay are offering readers 50% off a 2015/16 Bureau Licence when you switch from another payroll provider. The bureau licence (normally £199 + VAT per tax year) includes unlimited employers, unlimited employees, free support and auto enrolment functionality.
* Offer applies to new customers who switch to BrightPay from another payroll software provider for the first year subscription only. This offer applies to BrightPay 2015/16 bureau licences only and does not work in conjunction with any other offer.
You might also be interested in
At BrightPay Software, we have a passion for making the financial and administrative aspects of payroll management less time-consuming and easy to use. With years of experience and dedication to this ideal, we have created a range of IT software solutions which are in use by over 55,000 businesses in Ireland and the UK today.