What is it about pensions that cause so many shoulders to slump whenever the subject is raised?
Now, if you are picturing a pensions nerd trying to engineer conversations about pensions along the lines of “what are they?”, “how do they work?” and “why should I pay into one given that I won’t see the benefit until I’m old when I could just pay off my mortgage and then downsize?” then please think again. [If I’d managed to come up with entertaining ways of successfully getting those messages over to an uninterested audience, I would now have a stellar career in pension communications because – let’s be honest – the pension industry still hasn’t made that breakthrough to the wider populace.]
The slumping shoulders are purely brought about by asking the question “How is Automatic Enrolment working for you?”. I’ve been asking the same question for years (to a wide variety of different people) and yet the response is still unremittingly the same.
The vast majority of the payroll profession (including bureaux, specialist payrollers, accountants and bookkeepers) are still not aware that for the major pension providers for Automatic Enrolment (i.e. those where the majority of workers have their pension “pots”) can have pension data automatically sent to them each pay period in pretty much the same way that their FPS and EPS data goes to the HMRC.
Automating pension submissions has numerous benefits if done properly:
no CSV files
less time spent submitting pension data
fewer data errors (again less time)
errors fixed within the payroll software rather than in the provider’s site
independent confirmation of whether the scheme is RAS or NPA
one single submission (even where the non-automated process requires 2 or 3 CSV files to be submitted)
automated contribution collection (no forgetting to trigger that NEST contribution collection)
exactly the same process for all providers
Obviously, the caveat for enjoying all of the above is that your payroll software has built the full automated links to each of the providers and not just the easy ones that allow them to claim “automated submissions”.
It’s not a magic bullet – some pension providers don’t allow automation (some even still require payroll to do the assessment within their own systems – crazy or what?). But, the amazing thing to me is how many payroll bureaux, accountants and bookkeepers are still not aware that data automation is out there.
Well, it is and has been for years. Tell a friend or a colleague.
Pension submissions are one of the biggest inefficiencies in a payroll bureau setting (alongside uploading timesheet and expense data into payroll and updating the ledgers in accounting software – both of which are also standard, fully automated solutions within KeyPay).
And why am I writing another blog about Automatic Enrolment pension submissions? Well, KeyPay handles Automatic Enrolment within its payroll platform.
So payroll administrators can spend even less time on pension calculations and submissions and more time on using their skills on payroll.
So, pin your shoulders back and put a smile on your face knowing you can spend less time thinking about pensions – your future well-being depends on it!
KeyPay is the first true cloud-based platform to hit the UK bureau market, designed to eliminate the traditional payroll headaches of employee onboarding, data collection, payslip distribution, HMRC and pension fund compliance. In a single system, KeyPay automates the flow of data from employees across rotas, timesheets, leave management, and...