Written by Karen Bennett, BrightPay: Employers must complete their re-enrolment duties every three years. The re-enrolment date is chosen by the employer and falls into a six month window. Employers can choose a date, three months before or three months after the third anniversary of the original staging date. Months are calculated per calendar month. Postponement cannot be used for re-enrolment.
This flexibility allows employers to align their re-enrolment starting date with other key dates in their business calendar. For example, where an employer may have seasonal workers, they may wish to complete re-enrolment after a seasonal peak in their company’s employment. Another example would be, if an employer wishes to avoid putting additional pressure on their business at busy periods. An obvious example is where an employer would choose their re-enrolment starting date to align with the first day of a pay reference period.
Employers need to take care to assess the impact of re-enrolment on their business resources. A good tip is to make sure that the workplace pension provider will accept new entrants and check to see if your current payroll provider can handle re-enrolment. Also, ask both providers if there are any additional financial charges to process re-enrolment.
Your payroll software should easily automate the processes of re-enrolment as a standard feature. Good payroll software will support the administrative part of re-enrolment and streamline the process for you.
Some employers may outsource their payroll to a third party, such as an accountant, bookkeeper or payroll bureau. Check with your payroll advisor to ensure that they will process the re-enrolment tasks for you in order to comply with the law. A payroll bureau or advisor may decide that a specific date suits them to run your re-enrolment duties.
Written by Karen Bennett, BrightPay. Exhibiting at Accountex 2018.