1st Myth About Auto-enrolment
I Outsource Payroll So I Don’t Have To Worry
You may not directly handle your payroll responsibilities but, as an employer, you are legally responsible for making sure that you are prepared for the changes and are compliant with incoming legislation.
The Pensions Regulator recommends allowing 12-18 months to develop and to implement your plans. Find out your auto-enrolment staging date and check out the excellent Sage Auto Enrolment Checklist for advice on what to do and when.
2nd Myth About Auto-enrolment
We Already Have A Payroll Team So Our Systems Won’t Need to Change
New pension arrangements must be integrated into your existing processes and complying will bring with it additional record keeping requirements and regular submissions of information to the Pensions Regulator.
You may need to increase your payroll team or, ideally, introduce new specialist payroll software to help save your existing team time and you money.
3rd Myth About Auto-enrolment
If Lots of Staff Opt Out I Don’t Need To Have Everything Ready For My Staging Date
Eligible employees, 22 and up earning over £10k a year, are legally required to be automatically enrolled in a workplace pension scheme.
Scottish Widows suggest that only 8% of workers will opt out, so you are both unlikely to have lots of staff opting out and are legally required to auto-enrol them to begin with.
In addition, you may employ people who do not automatically qualify but have the option to opt in. Our advice is not to delay as your situation is unlikely to be as clear as it first appears.
4th Myth About Auto-enrolment
We Currently Employ A Pension Scheme So Don’t Need To Worry
Workplace Pension Reform brings with it new legal obligations and conditions that your existing scheme may not meet. You will need to assess all your employees and not just the ones in the current plan. You will also need to check that your existing system qualifies as a pension scheme under new guidelines.
5th Myth About Auto-enrolment
I Can Postpone Auto Enrolment And Give Myself An Additional 12 Weeks
Auto-enrolment is manageable once you get used to it but this will take time to prepare for. Postponing won’t make things any easier and actually increases your workload as you have to write to all of your employees informing them of your intention to postpone and then assess them again once you decide to start the process.