Auto Enrolment is now in full swing and starting to affect small and micro employers. Many of these employers do not understand auto enrolment and do not want any ongoing involvement with the process. A key concern for small and micro employers is how much auto enrolment will actually cost their business.
With auto enrolment, employers are faced with additional ongoing costs, including the employer contributions each pay period. What is the easiest and most accurate way for an employer, or a bureau on their behalf, to calculate these costs?
BrightPay have developed a pre-assessment tool, which enables users to automatically prepare a pre-assessment report. This report is useful to send to clients 6 months in advance of their staging date, giving the employer a preview of what auto enrolment will look like when they reach their staging date.
The pre-assessment tool uses employee details from the current pay period to provide an estimate of what auto enrolment might look like at the time of staging. The report will include details of each employee’s auto enrolment worker category, along with their pensionable pay, qualifying earnings, employee contributions and employer contributions. Watch BrightPay’s Pre-Assessment video.
PDF Example: Pre-assessment Report
The amounts are subject to change, depending on non-eligible or entitled workers choosing to join the scheme and fluctuations in employee pay.
The report can be exported to PDF and also includes some general information about employee assessment, including definitions of worker categories, qualifying earnings and minimum contribution rates.
This is an ideal document to send to clients in advance of their staging date, giving them an idea of how much auto enrolment will cost them at each pay period thus allowing them to plan accordingly. For example, the report may show that the employer has no eligible jobholders, and so is not required to set up a pension scheme.
BrightPay will also allow you to create a post-assessment report. After staging, the assessment report will give you a snapshot of what auto enrolment looked like on the staging date, highlighting the assessment date, the employee worker categories and postponed employees.
PDF Example: Post-assessment Report
Video: You can see how BrightPay’s pre-assessment tool works here.