Auto Enrolment - Declaration of Compliance & what’s involved

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All employers must submit a declaration of compliance to notify The Pensions Regulator that they have fulfilled their automatic enrolment duties. It must be submitted within five months of their staging date.  Fines are in place for employers who do not submit their declaration in time.

The Regulator requires certain information to make sure employers have fully complied with their AE duties such as how many employees are enrolled into a workplace pension scheme and which pension provider(s) the employer has chosen for their employees.

Key Points

  1. If employers do not have any employees to automatically enrol they still must complete their declaration of compliance.

  1. Penalties are being enforced for employers who fail to submit their declaration of compliance on time.

  1. The declaration will be an accurate overview of your employees on the staging date.

  1. Each employee must be accounted for on the declaration.

  1. The deadline to submit the declaration is five months after your staging date.

  1. Employers should start completing their declaration as soon as possible to avoid fines.

Information to Submit

What information do employers need to submit?

Employers will need their letter code and PAYE reference in order to access the declaration of compliance online service. The Pensions Regulator has provided this to employers via written correspondence. If you have not received your letter code you can contact [email protected].

The PAYE reference is located on a P6 /P9 coding notice or on your payslip booklet, P30BC. The Regulator will need to know how many employees were employed on your staging date. They will also need to know how many of these employees have been enrolled in a pension scheme and how many if any, were in a pension scheme already. Information about the employer’s chosen pension scheme will additionally need to be presented with the employer pension scheme reference (EPSR) or the pension scheme registration number (PSR).

To avoid penalties, this information must be submitted on the declaration within five months that follow the staging date. Let’s take an example, if an employer staging date is the 1st January 2015, they must submit the declaration by the 31st May 2015. In this example the 31st May is a Sunday. If your deadline falls on a Saturday, Sunday or public holiday it is possible to submit the declaration on the next working day. For employers that have opted to postpone automatic enrolment, they must not submit the declaration until after the postponement period has ended.

Payroll Advisors can help their clients avoid these penalties by ensuring that their declaration of compliance is completed on time. A full checklist is available on The Pensions Regulator's website.

Auto Enrolment Software

It will be important to find out if your payroll software solution will allow you to automatically assess each employee’s eligibility for auto enrolment. It is further essential to ensure the solution can handle postponement, provide tailored AE letters to employees, allow for opt outs & opt ins requests, issue refunds and is integrated with AE pension providers.

The advantages of the right payroll software are significant, namely it will automate these employer tasks, save you time and ease the stress of all that is involved with Auto Enrolment. BrightPay is payroll and auto enrolment solution that does just that.  For payroll bureaus, there are unlimited employers, unlimited employees and unlimited support. For employers there are unlimited employees and unlimited support. Find out today with our free 60 day trial how easy it easy to use BrightPay for your auto enrolment duties.

Free Auto Enrolment Webinars

BrightPay is also hosting a series of auto enrolment webinars specifically designed for accountants, bookkeepers and bureaus that have payroll clients. These webinars will include a number of guest speakers from the accounting and payroll industry including Robin Armer (NEST), Mark Lee and Patrick McLoughlin.

Register here today!!


Written by Karen Bennett for BrightPay