The law has changed in the UK pertaining to companies who don’t offer workers a pension and don’t make sure that eligible staff members are enrolled in pension schemes. In the past it was up to individual workers to pay a certain amount of money into a pension scheme at work, and they had to enrol themselves into company schemes without assistance from their employers. Business owners can now be penalised for not keeping their accounts up to date, so it is vital to monitor your books.
What is Automatic Enrolment?
Employers are now obliged, under UK law to pay a contribution into an employee’s account who is eligible for a pension. The government has made it compulsory for business owners to look after the welfare of their staff and contribute towards a pension scheme. Automatic enrolment is being integrated into workplaces throughout the country starting with all the major UK employers, by February 2018 all organisations must ensure eligible employees are part of their pension scheme, if they haven’t been added, they may face consequences.
Solutions for Payroll Compliance
There are several solutions to comply with the new law and one of the easiest one is to contact a professional accounting software company who can provide you with specialised equipment designed to keep you up to date with AE compliance. If you don’t carefully monitor your pension scheme and include employees in the system, you run the risk of being hit with severe penalties. It is not just a once off task, your accounts must be screened to ensure you are complying with the law, this includes checking the auto enrolment payroll, processing payments, inspecting data and communicating information with relevant bodies.
The only way of carrying out these tasks is to send information back and forth from your payroll system to your pensions department. This takes a considerable amount of time and manpower, the best way of dealing with this is to install a custom-made accounting software system which makes it easy to transfer data between several areas of your company and other parties. This is a system that must be streamlined to ensure your organisation complies properly with state laws, if you neglect any part of this, you could end up in a lot of trouble.
The only solution to deal with this new law is to have your company operating on an automated system, you’ll need to work with an experienced accounting software team and allow them to create a specialised system which integrates all the aspects of automatic enrolment into one simple solution. There are some companies in London who have already designed powerful software systems which makes compliance with the new laws incredibly easy.
It is vital that you have an accounting software system which protects your business from being penalised for not adhering to the new laws put in place by the government. Your company must work with an innovative team who guarantees that your business will be set up with an accounting system which makes compliance simplistic.