Auto Enrolment:

7 Steps to Profit with BrightPay

Paul ByrneManaging DirectorBrightPay

Q&A SessionQuestions Tab or #BPWebinars

CompetitionTwo BrightPay bureau 2015/16 licences

Q&AQ&A

WINWIN

Auto Enrolment: 7 Steps to Profit with BrightPay

Paul Byrne

• Accountancy Practice for 20 Years

• Set up own company

• BrightPay Background

• 65,000 customers – UK & Ireland

BrightPay & Auto Enrolment

Agenda

• Auto Enrolment as a Service?

• Automate & Streamline AE Duties

• BrightPay’s Approach

• BrightPay Demo

• Increase Profits from Auto Enrolment

• 7 Steps to Profit

Auto Enrolment as a Service

Auto Enrolment

Small & micro employers expected to turn to an intermediary

Small & micro employers expected to ask an accountant for help and guidance

59%

74%

1.2m

Small & micro employers set to stage from June 2015

• Majority of employers will not have the knowledge or experience to make informed decisions

• Information overload – Confused and overwhelmed

Staging date

Maintain employee records

Identify eligible workers

Pension contribution calculations

87%86%

85%80%

Automate Auto Enrolment Duties

Uncomplicated AE Duties

• 1 – 2 hours should be sufficient to deal with auto enrolment staging tasks

• Monitoring employees and managing employees who opt in and opt out.

• Some payroll software available monitors the ages and earnings of employees

Payroll Software

• With most payroll software - little work involved in the auto enrolment process.

• Staging is the most hands-on task involved

With the right tools, auto enrolment should become a seamless part of the payroll process.

Automation

• For large, repetitive or time sensitive tasks, the speed of automated AE offers significant cost savings to bureaus.

• Especially relevant when employers approach you close to, at, or even after their staging date.

Auto Enrolment Functionality

• With some payroll software providers, you may face additional costs for Auto Enrolment functionality and support.

• Alternative software packages exist that have Auto Enrolment features included without an increase in the price and no hidden support charges.

Streamline Auto Enrolment

Payroll Solutions

• BrightPay is a modern innovative solutions that can automate Auto Enrolment duties

• Enter staging date to assess each employee’s eligibility for Auto Enrolment

• Employee AE communications based on each employee’s individual eligibility.

BrightPay Payroll Software

• BrightPay is payroll and auto enrolment software

• Enables bureaus to help their clients prepare for their staging dates.

• An all encompassing solution that works to automate and simplify the AE process

• Makes it as easy as possible for you to help your clients achieve compliance.

How BrightPay handles Auto Enrolment

Payroll Software

• Weekly, fortnightly, 4-weekly, monthly payment schedules

• Basic, daily, hourly and statutory pay

• Payslips can be emailed to employees – password secure payslip attachment

• RTI submissions – automatically creates Full Payment Submissions (FPS)

Employee Assessment

• Assessing employees can be time consuming

• Based on employees wages and age, BrightPay will automatically assess each employee and let you know who needs to be enrolled

• Alert you to what your AE obligations are for each employee based on their worker category

Enrolling Employees

• Ease of enrolling employees – fundamental to AE process

• Individual employee information must be submitted to your chosen pension provider

• BrightPay makes enrolling employees and processing opt-in requests straight forward

• Process opt-out requests, refund all deductions made and show this refund on the payslip

Communications

• Communications – how auto enrolment affects each individual employee

• Right information, right employee, right time

• TPR – specific requirements need to be included

• Free templates – time consuming

• BrightPay – automatically examines each employee and produces a tailored AE letter, ready for printing or exporting

Postponement

• Option to postpone AE for up to 3 months

• Additional communications required to notify employee that they have been postponed

• Deferral date – must reassess employees and enrol eligible employees in a qualifying scheme

• BrightPay – automatically produces postponement communications and alerts you when postponement period expired.

Ongoing AE Duties

• Monitor any changes to employees age and earnings

• If an employee becomes an eligible jobholder, they must be enrolled into a qualifying scheme

• BrightPay will recognise this change, alert you of your AE obligation, and produce the necessary communications

• Payroll software should continuously monitor employees in case enrolment is required

AE Contributions

• BrightPay – automatically uses phased minimum contribution levels

• There is also the option to use custom contribution rates if desired

• BrightPay makes relevant contributions and deductions at each pay period and includes these on employees payslip.

• BrightPay keeps up-to-date with minimum contributions rates

Limitations

• Some providers have limitations to AE features and functionality

• BrightPay has no limitations – it handles and automates the AE employer duties for you

• No restrictions to the number of employees

• Performs necessary tasks for non-eligible jobholders and entitled workers

AE Pension Providers

• BrightPay’s integration with auto enrolment pension providers:

Records & Reporting

• Proof of compliance – records must by law be kept for a minimum of 6 years

• For example, communications in relation to opt in, opt out, and joining notices

• BrightPay easily generates customisable reports for analysis

Pricing & Charges

• Pricing varies across the industry with each payroll software provider

• Some charge extra per employee per month – can quickly add up

• Some charge additional fee for Auto Enrolment functionality

• Make sure to read the small print – be aware of hidden costs, such as support

BrightPay

Unlimited EmployersUnlimited Employers

Unlimited EmployeesUnlimited

Employees

Free Support

Free Support

60 Day Free Trial60 Day

Free Trial

BrightPay Demo

1. Simplify and Automate

2. Engage Your Clients

3. Avoid Penalties

4. Open for Business

5. Payroll Software

6. Increase Revenue

7. Ensure AE Functionality

7 Steps to Increase Profits from Auto Enrolment

7 Steps to Increase Profits

1. Simplify and Automate

1. Simplify & Automate

• Simplify the process and automate the AE admin chores – reduce time spent handing each payroll client.

• Key to success – increase the speed involved

• Avoid inefficient or expensive AE software solutions and save time and money.

• Why? Greater efficiency, increased value and improved cost savings!

7 Steps to Increase Profits

1. Simplify and Automate

2. Engage Your Clients

2. Engage with your Clients

• Engage with clients who have not yet staged

• Find out clients’ staging date – the Pensions Regulator's website

• Risk of losing some or all of your payroll clients

7 Steps to Increase Profits

1. Simplify and Automate

2. Engage Your Clients

3. Avoid Penalties

3. Avoid Penalties

• The Pensions Regulator continues to enforce fines and penalties for non-compliance.

• Not allowing enough time to plan could lead to your clients being fined

• AE Penalties: £50 to £10,000

• In 2014, The Pensions Regulator fined 169 employers for failing to comply.

7 Steps to Increase Profits

1. Simplify and Automate

2. Engage Your Clients

3. Avoid Penalties

4. Open for Business

4. Open for Business

• Position themselves as open for auto enrolment business

• Outsource to you because you have the know-how and it saves them time and money.

• Trusting you as a payroll professional to make sure they are fully AE compliant with the law.

• Open to the idea of outsourcing AE for a chargeable fee.

7 Steps to Increase Profits

1. Simplify and Automate

2. Engage Your Clients

3. Avoid Penalties

4. Open for Business

5. Payroll Software

5. Payroll Software

• Without appropriate systems in place, additional time and resources will be required

• Payroll software can automate employer admin tasks, e.g. Assessing employees

• Access employee information to determine who is eligible, non-eligible and entitled

• Ensure the software supports the requirements of AE and will correctly perform tasks

7 Steps to Increase Profits

1. Simplify and Automate

2. Engage Your Clients

3. Avoid Penalties

4. Open for Business

5. Payroll Software

6. Increase Revenue

6. Increase Revenue

• A unique platform to increase profits

• A market of small and micro employers due to stage this year

• Important to capitalise on this window of opportunity

• A number of advantages to offering Auto Enrolment as a Service

7 Steps to Increase Profits

1. Simplify and Automate

2. Engage Your Clients

3. Avoid Penalties

4. Open for Business

5. Payroll Software

6. Increase Revenue

7. Ensure AE Functionality

7. Ensure AE Functionality

• Plays a vital role in ensuring the success of automatic enrolment.

• Payroll software can provide the necessary functions to automate the employer admin tasks.

• The Pensions Regulator urges bureaus and employers to check with their payroll provider

BrightPay Pricing

Bureau Licence:• Unlimited employers• Unlimited employees• Auto Enrolment functionality• Free phone & email support

Standard Licence:• Unlimited employees• Auto Enrolment functionality• Free phone & email support

£199

ex vat/ year

£199

ex vat/ year

£89ex vat/ year

£89ex vat/ year

Does Your Payroll Software...

1. Assess your workforce?

2. Allow the use of postponement?

3. Automate employee communications?

4. Calculate pension contributions?

5. Handle opt-in and joining?

Does Your Payroll Software...

6. Handle opt outs and refunds?

7. Notify you when actions need to be taken?

8. Keep records and provide reports?

9. Integrate with multiple pension scheme provider systems?

Request Demo

http://goo.gl/forms/YOIg68muxK

Follow BrightPay on Twitter:

@BrightPayUK

#BPWebinars

Useful links and resources

• The Pensions Regulator – www.thepensionsregulator.gov.uk/

• The Pensions Advisory Service – www.pensionsadvisoryservice.org.uk/  

• NEST – http://www.nestpensions.org.uk/

• Request Demo – BrightPay Demo

• Accounting web – www.accountingweb.co.uk/

• BrightPay free trial – www.brightpay.co.uk/try/

• Auto Enrolment for Dummies http://bitly.com/1AhNPjX

Questions & Answers

For more information see: www.brightpay.co.uk

Or phone: 0845 3004 304