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5 Top Tips For Employers On Auto Enrolment

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5 Top Tips For Employers On Auto Enrolment

It is essential not to underestimate the challenge Auto Enrolment poses for employers, both large and small, however tackled in the correct manner and it could be rewarding for both employers and employees. Here are 5 top tips for employers to follow to ease the transition.

A small Businessman pondering AutoEnrolment

1. Learn and understand your auto enrolment deadlines:

Each employer has been, or soon will be, given a Staging Date based on their number of employees on 1st April 2012. It takes 12 to 18 months to prepare for Automatic Enrolment and many employers find their staging date is earlier than they thought so get like the scouts and be prepared.

2. Nominate a point of contact as soon as possible:

Better still implement a project team including your payroll and HR people and a ideally Professional Adviser to act as co-ordinator to ensure all the affected roles understand and agree upon each decision.

3. Agree an auto enrolment implementation schedule:

If you have an existing workplace pension scheme you will need to review it to see if it is fit for purpose, requires tweaking or a complete overhaul. Every employee must be assessed and categorised to decide who will be auto enrolled and who will not.

4. Make sure your payroll systems can cope:

You will need implement procedures to identify the eligibility of every single employee, deduct the correct levels of contribution and produce the relevant communications at the right time and on each pay period, be that weekly, four weekly, monthly or any combination of these. Manual data manipulation may be required and will require strict procedures

5. Install processes and implement staff communication:

One of the key methods to easing the transition for your employees will involve consulting with staff right from Day 1 and throughout the Auto Enrolment process. Employees will have questions and it is imperative that you provide these answers proactively or you risk being inundated with queries and concerns later.

There are many other factors to consider such as should you use postponement? Is salary sacrifice suitable for your company? What about data protection issues? But then these are simply our 5 top tips and we would be more than happy to speak to you if you have any questions.

About Ciaran Scullion

I am a Financial Planner and Mortgage Adviser. I provide Independent Financial Advice through my company From Acorns Financial Planning Ltd to personal and business clients throughout Northern Ireland from my base in Tyrone, Mid Ulster.

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