Auto Enrolment Toolkit
The Pensions Regulator is due to release a toolkit to help users of HMRC Basic PAYE tools with their upcoming Auto Enrolment responsibilities. Currently there is no functionality within Basic PAYE tools to process Auto Enrolment, and the Pension Regulator has confirmed that it has no plans to either. Which leaves the roughly 200,000 users needing to look at other options for when they stage.
With this is mind, the Pensions Regulator is to release a basic toolkit to enable users to ensure they comply with the regulations. However, the tool lacks many options that employers may need to use, such as only processing contributions based on banded earnings. Some of the many disadvantages of this tool is that, due to its highly manual nature, the process will be time consuming with a possible lack of accuracy. The human error factor means there is an increased likelihood that mistakes will be made. These mistakes will take additional time to locate and correct.
While it is a good thing that the software is free, and doubtless that will pull many Basic PAYE tools users into using it, there are many other options out there to help aid compliance issues. Employers need to seriously consider their options and make sure that they have an adequate system in place to cope with the demands of Auto Enrolment. Or else the penalties can be quite high.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
Image courtesy of dan at FreeDigitalPhotos.net
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