Published by Rob Thomas on
Many payroll providers chose to focus upon RTI initially, meaning that preparations for AE for larger employers was not easy. Once again, recent changes to the pension and taxation environment and Budget 2016 coincide with AE planning for larger employers - specifically re-enrolment.
At a time when finance, HR and payroll departments are already stretched it will be time to go through the AE process again and re-enrol those not in a pension arrangement. For those companies with more than 500 employees re-enrolment could be this year.
Since the first phase of staging, there has been the introduction of AE easements and for many this will be the chance to consider whether they should take a different approach.
Since the first phase of staging, there has been the introduction of AE easements and for many this will be the chance to consider whether they should take a different approach. The easements could simplify the re-enrolment process but there are many other pitfalls to overcome.
Add into the mix the change of staff within departments who were originally enrolled with AE process and strategy with the compounding of process errors - the AE headache begins all over again. Despite a handful of easements, the legislation is still complex and software available to help manage AE varies from provider to provider.
Recent research from Sanctum Software indicates that approaching two thirds of the employers that have implemented AE have made technical errors. Although not all of these will result in material disadvantages to members, the research shows that over a quarter could mean workers being worse off as a result of shortcomings in employer compliance with AE legislation.
So, what can employers do now to prepare for re-enrolment and ensure that the journey is as smooth as possible? The key is to understand what has been going on, what has been working well, what needs to change and to prepare the strategy and process in advance.