Just to let you know that I have now completed my first AE with a client and a couple of you requested an up date. It wasn't too bad - Sorry I'm lying I nearly had a nervous breakdown. But here are a few pointers that I had to learn the hard way. Hopefully this will help.
1. The staging date is always the 1st of the month . So for example 1st July. This means that when you process June's payroll everyone will be assessed then (6th June - 5th July)
2. The software I used was one of the big ones - client paying. It did the job and now I know what is entailed will be happy to use Moneysoft for my smaller clients. So I am not jumping ship.
3. NEST: Website and helpline is very good. No long phone queues and they will talk you through everything. Not sure as time goes on though how they will cope unless they employ more telephone support staff.
4. If you use NEST make sure your pay periods are the same as what's in your software otherwise you will get an error message when you try to up load the contribution file. I fell over because when I registered my client on NEST I indicated they were paid monthly. But there's "Monthly" and "Tax Monthly" - so make sure you get that right.
5. First month you will have to upload the employee's who have been assessed and automatically enrolled. (And you need to do this each month each time somebody is auto enrolled.)
6. Then you will up load the contributions file, and hopefully it will be excepted!
So that's it. Hopefully when I come to do it next month it won't be so stressful!
Glad you cracked it. So you assess at the start of each month? Good to know, so presumably any changes/new starters are notified to the pension co at the start of the next month?
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
The software will assess everyone in the tax period 6th - 5th . So if your staging date is 1st July when you process the payroll for June it's the period 6th June to 5th July , so will assess them then. Thats what happened in my case because the employees are paid monthly.
Any new employees who are automatically enrolled (unless you defer them for 3 months - say because they are on probation ) then yes you have to upload a file to NEST with the information.
Also interestingly before we staged quite a few employees said they would opt out but from the feed back I have received it's unlikely anyone will. Which means that will cut down on the admin on my part. Any employees who wish to opt out must inform the pension provider directly. All you would do is wait for notification from them and it's just a box to tick with a date in the software anyway
Most of my PAYE clients are directors, so they can ring up and opt out (for want of a better phrase). I am concerned how it will affect me, as I employ my daughter part time. Although, it might be that she has gone off to Uni by the time my staging date rocks up! I have another client who employs his mum. Luckily his staging isn't until mid next year, so have time to review rules thoroughly!
If anyone is interested, AAT Manchester are doing an AE event in March next year. I've just finished organising it. The speaker is from NEST.
Hi Michelle
I was just saying the exact same thing yesterday as my son works for me one day per week, but if I recall correctly its only for employees on over £xx per year. Need to go and check out what the limit is.
I must put myself down for the March event!
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Although - what I do need to check is what if someone has two or three jobs. No time to check that one out today as off out soon, but added to my list.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
Hi
Sorry - just got bounced of my internet again - gonna be a row with BT later!
Yes people can opt out, but not sure how that works in practice (eg opt out is annual thing or not)
Sorry not had chance about 22nd yet - added to my list so I dont forget. Lost my diary!! All been a bit of a whirlwind here the last 24+ hours and have to go into Manchester in a mo! will let you know.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
You can opt out but every 3 years assuming you fit the criteria (over 22 , earning above £10,000 *and normally resides in the UK) you will be automatically enrolled again. So you would have to opt out again.
Thing is , why would you want to? It tops up the basic state pension. With NEST , and most probably the other pension providers , 3 years after staging the employer and employee contribution is 8% * and the employee gets tax relief on their contributions.
Hi Georgie
Knew they must have another review/Opt out period at some time - didnt think it would be as long as three years, but thats good to know so thanks for that.
I know you say why would you want to - but there are still a major proportion of the population who feel they cannot afford to do this, even though there is an argument that they cant afford not to. Never mind the ones who just dont want to whether they can afford it or not, because of various reasons, mostly thinking that retirement is so very far off for them (but we all thought that!). Ive heard a lot of people say they will opt out, with Michelle's scenario of her daughter being one such valid one.
I had got in my head that the minimum earning were £20k - couldnt be further from the mark on that one could I.
Have you seen anything about what happens with people who earn more than the £10k but this earning is spread over two or three jobs?
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
I remember someone bringing this up at an event with The Pension Regulator I went to. It was over a year ago so I maybe wrong on this but they will be assessed within each job they do depending on their criteria and can opt out or in as they wish.
I know what your saying about employees not being able to afford it and I thought that too as I am always being asked "when is my pay going in the bank"? But of the 30 employees who were automatically enrolled only one has chosen to opt out and that's because she's leaving the uk in a few months.
When they all got their payslips they were happy to see that the employer had also contributed to their pension and it gave them a sort of smug gratification because they had something for nothing from the employer.
Mmm, lets see if they are still so smug when the lack of any sort of pay rise hits them... Except for the opt out. She can have a promotion.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
But Shaun, the Employer isn't allowed to discriminate, and can't exert any sort of pressure on the employee. So everything in the garden is lovely!!
I agree that the employee will benefit, but how many minimum wage bods are going to want to give up 5% of their pay (from 2018) when they're already struggling to make ends meet?
For the micro employer it's an administration cost they could well do without. I don't think many of them realise the full implications yet (none of mine stage until 2017) so interesting times ahead.
As an aside I was talking about ae to a friend yesterday. She said she doubted her employer would even bring it in, and I said they don't have a choice. When checking the staging date it was 1st October 2015, so all I can assume is her employer has postponed it for 3 months, or is blissfully unaware about it.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
