Will your Payroll Software be compatible for Automatic Enrolment?
To date, Basic PAYE Tools (BPT) users have not had access to software functionality that can help them carry out their automatic enrolment duties. Assessing your workforce and calculating contributions manually could lead to errors and non-compliance.
Online Contributions Calculator Available
With a large number of small employers still using the HM Revenue & Customs free package, The Pensions Regulator has recently launched an online contributions calculator. The aim of this is to help users of BPT work out the amount each member of staff needs to pay into a pension scheme. Once you’ve used the Duties Checker* and worked out you have staff to automatically enrol, you can then access the calculator in the ‘how to work out your contributions’ section.
What problems might I encounter?
The results will then need to be fed back into BPT and after each pay period, the pension details will need to be manually input into the pension scheme’s web portal. This will add a huge amount of time to processing your payroll and will not be error free.
It should also be noted that BPT does not produce payslips. Part of the employer obligations under automatic enrolment is to show the deductions and contributions being made each pay period.
How to Simplify the Payroll and Automatic Enrolment Process
Whilst there is no legal obligation to have software in place, The Pensions Regulator is encouraging employers to use an integrated payroll and automatic enrolment solution that can automate employer duties and simplify the process.
As we are now approaching the tax year end, it is imperative that all BPT users consider whether this package is still suitable for their needs. In addition to this, if you are using a different payroll package, you must check that this is compatible for automatic enrolment. If this is not already included with your current software provider as standard, you may have to pay additional costs for functionality and support. If there are additional charges, it may be worth looking into other packages or consider asking us to help you through the process.
How to avoid errors and non-compliance
Our Payroll Bureau has software that can handle all the necessary employer duties. For further information or if you would like us to provide you with a quote for our services, please contact our Payroll Manager, Clare Walker email@example.com or call 01904 655202.
*Link to the online Duties Checker: