December

Payroll needs to take responsibility for auto enrolment

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Nearly 60% of businesses see payroll as having the primary responsibility for handling workplace pension reforms, an IRIS survey has found.

At the recent Earnie Customer Conference we carried out a survey with nearly 100 organisations who are staging imminently for auto enrolment, asking "who is primarily responsible for auto enrolment within your organisation?"

A staggering 58% felt that either payroll alone, or a combination of payroll and other departments would be responsible for auto enrolment.

39% of respondents answered that payroll would hold primary responsibility.

Naturally there were some participants who felt that auto enrolment would involve collaboration and joint responsibility between departments. 13% answered “payroll and HR”, 3% answered “payroll and finance” and a further 3% answered “payroll, HR and finance”.

23% answered that finance alone would be responsible for auto enrolment and 9.5% answered HR.

The key point to take away from this survey is that 58% of businesses believe that payroll will be responsible in one way or another for the success of auto enrolment.

Auto enrolment has to take place in payroll, as payroll has access to employees' PAYE information for each pay period. This information forms the basis of how employees will be categorised to see if they are eligible for auto enrolment and the assessment must take place each time a payroll is run. If a different function or department is given the responsibility, they will still need to work alongside payroll to acess this information, and the inherent delays and opportunities for error may mean the difference between compliance and non-compliance.

Having these calculations automated is also a huge help in achieving auto enrolment success, as it is a highly complex task and legislation requires you to maintain records for up to 6 years.

Have you started preparing for auto enrolment yet? To find out what you need to do and when, why not download your free introductory guide?

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Posted by
Matthew Thompson
9 December 2013
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