Automatic enrolment checklist for your clients

19th Oct 2021
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When you take on a new business as a client, there are actions that must be taken to keep up with their automatic enrolment duties. Whether or not you are looking after or helping an employer with their auto enrolment duties, the employer remains ultimately responsible for compliance. The checklist below will clearly outline the steps that your client must take.

  1. Assess employees

Your client (or you on their behalf) must assess their employees against the eligibility criteria on their duties start date and work out whether an employee is an eligible jobholder, a non-eligible jobholder or an entitled worker. Depending on the payroll software, this can be done automatically. BrightPay payroll software will automatically assess all employees once the duties start date is reached. It will continuously monitor any changes to an employee's work status each pay period and flag an employee if they become eligible.

  1. Choose a pension scheme

If any of the client’s employees need to be put into a pension scheme, your client will have to set up a scheme with their chosen pension provider. Both your client and the staff will pay into the pension fund. BrightPay is compatible with 18 different workplace pension providers and includes direct API integration with NEST, The People's Pension, Smart Pension and Aviva.

  1. Enrol eligible employees

You or your client must enrol all eligible jobholders into the pension scheme. Staff must be enrolled even if they’ve expressed a wish to opt out. If they still wish to opt-out, they can opt out after they’ve been put into a pension. A useful feature in BrightPay is the option to batch enrol more than one employee at the same time.

  1. Write to staff

You or your clients must write to each employee individually explaining how automatic enrolment applies to them, including anyone not being put into a pension scheme. This must be done no later than six weeks after their duties start date. BrightPay will automatically prepare employees’ enrolment letters that are personalised to each individual. These can be printed, exported to PDF or emailed directly to the employee. If you are using BrightPay Connect, an add-on to BrightPay Payroll, these letters can also be added to the employee self-service portal, which is accessible through a smartphone and tablet app.

  1. Declare compliance

Your client (or you on their behalf) needs to go online to The Pension Regulator's website and declare that they’ve met their auto enrolment duties, even if they didn’t need to put any employees into a pension. The declaration of compliance must be completed no later than five months after their duties start date.

  1. Re-enrolment every three years

Every three years after the client’s duties start date, they must carry out re-enrolment to put back in any staff who have left the pension scheme. In BrightPay, if employees meet the criteria for re-enrolment, on-screen flags and alerts will appear to notify the user that they now have re-enrolment duties to perform. This feature is included in BrightPay and will be activated by entering the chosen re-enrolment date into the software. All BrightPay licences include full auto enrolment functionality at no extra cost.

Visit the BrightPay website to find out more about how you can support your clients with their auto enrolment duties or book a demo to see BrightPay’s full functionality.

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