5 Steps to Make a Profit from

Auto Enrolment for

Bookkeepers

Paul ByrneManaging DirectorBrightPay

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CompetitionTwo BrightPay bureau 2015/16 licences

Q&A

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5 Steps to Make a Profit from Automatic Enrolment

Paul Byrne

• Accountancy Practice for 20 Years

• Set up own company

• BrightPay Background

• 65,000 customers – UK & Ireland

Agenda

• UK Payroll Landscape

• Lack of understanding surrounding Auto Enrolment

• Auto Enrolment Statistics

• Auto Enrolment Penalties 

• Profit from Auto Enrolment

• Are you Open for Business?

UK Payroll Landscape

UK Payroll Landscape

• Payroll landscape has changed forever

• Employers must participate in offering a workplace pension scheme

• 50 to 259 employees - until March 2015

• Up to 49 employees – start June 2015

Employer Sizes

Large employers: 250+ workers

Medium employers: 50 – 249

workers

Small employers: 5 – 49 workers

Micro employers: 1 – 4 workers

Auto Enrolment Responsibilities

1. Set up a Pension Scheme

2. Staging date – Assess the workforce

3. Communications

4. Declaration of Compliance

5. Ongoing Duties

Auto Enrolment

Eligible Jobholders

Must be automatically enrolled if they:

• Are aged between 22 and State Pension age• Earn more that £10,000 per year• Work, or ordinarily work, in the UK

Non Eligible Jobholders & Entitled Workers

Lack of understanding surrounding Auto Enrolment

1.2m

Small & micro employers set to stage from June 2015

• Majority of employers will not have the knowledge or experience to make informed decisions

• Information overload - Confused, bewildered and overwhelmed

Top TPR Queries

1. Employer Duties

2. Declaration of Compliance

3. Staging Dates

Opportunity for You

• Auto Enrolment is perceived as time consuming, frustrating and costly

• 78% of Small Businesses will look to their bookkeeper, accountant, payroll bureau or advisor for advice and counsel

• Opportunity for Bookkeepers to add value to existing services

• Gain new business• Retain client base• Increase profits

Perfect platform to acquire new clients while building a long term, sustainable business

Auto Enrolment Statistics

51%

81%

97%Smaller Medium Employers

Small Employers

Micro Employers

Staging Date Awareness

Micro Employers

• Feel less confident about dealing with the administrative burden

• Likely to find it difficult financially to contribute to a pension

• Most likely to use bookkeeper or bureau

• 21% feel they will be self reliant

Auto Enrolment Penalties 

Auto Enrolment Penalties

• Responsibility for AE compliance rests with the employer.

• If employers don’t comply, enforcement action starts with statutory notices and is followed by penalty notices.

• Further non compliance may result in court action.

Penalty Notices

Fixed Penalty £400

Escalating Penalty

£50 - £10,000

Civil Penalty £5,000 - £50,000

Auto Enrolment Penalties

2,161

Total Automatic Enrolment cases closed to date

1,316

Compliance Notices Issued

169 Fixed Penalty Notices Issued

Profit from Auto Enrolment 

Opportunity for Profit

• Employers – Lack know-how, experience & resources

• Need professional help to comply & learn new responsibilities and legal requirements

• That’s where bookkeepers and bureaus can step in

Opportunity for Profit

• Considerable opportunity

– Gain new business,

– Retain client base

– Increase profits

• Perfect platform to acquire new clients while building a long term, sustainable business.

Auto Enrolment Ready?

• Are you ready or prepared to take on Auto Enrolment Business?

• What level of support / information will you offer?

• Are you prepared for employers coming to you last minute?

Auto Enrolment Ready?

• Easy to understand, relevant and actionable Auto Enrolment advice

• A short window of opportunity - position themselves as open for business

• The experience and knowledge of bookkeepers can help employers understand what they need to do to be fully AE compliant.

Are you Open for Business? 

1.Automation

2.Functionality

3.Hidden Costs

4.Avoid Penalties

5.Communication

Payroll Software

Software Solutions

• Average 33 administrative tasks

• Automate employer responsibilities

• Combined payroll and auto enrolment solution

• Greater efficiency, increased value, improved cost savings

Software Solutions

Payroll software that automates auto enrolment tasks is vital:

• Employee assessment• Personalised communications• Ongoing monitoring• Opt-outs & refunds• Mandatory reporting• Pension contribution deductions

Payroll Software

• Payroll Software can be used to automate these tasks

• Check with payroll software provider – does it include auto enrolment functionality?

• Consider an alternative software package to perform required tasks

BrightPay & Auto Enrolment

• Empower bookkeepers to improve profit margins and increase the turnaround of these clients.

• Designed to take the grunt work out of Auto Enrolment.

• Auto Enrolment – effortless and uncomplicated with BrightPay

BrightPay Payroll Software

Unlimited Employers

Unlimited Employees

Free Support

60 Day Free Trial

How BrightPay handles Auto Enrolment

BrightPay’s Key Take Aways

1.Be Ready

2.Payroll Software

3.Costs

4.Support

5.Open for Business

“The language used is easy to understand and minimises the use of payroll jargon.“

“The BrightPay user interface is superb and makes data capture painless.”

ICB Accredited

• BrightPay is an ICB accredited payroll solution

• BrightPay Accreditation Report

ICB Discount

Request Demo

http://goo.gl/forms/YOIg68muxK

Follow BrightPay on Twitter:

@BrightPayUK

#BPWebinars

Useful links and resources

• The Pensions Regulator – www.thepensionsregulator.gov.uk/

• The Pensions Advisory Service – www.pensionsadvisoryservice.org.uk/  

• NEST – http://www.nestpensions.org.uk/

• Request Demo – BrightPay Demo

• Accounting web – www.accountingweb.co.uk/

• BrightPay free trial – www.brightpay.co.uk/try/

• Auto Enrolment for Dummies http://bitly.com/1AhNPjX

Questions & Answers

For more information see: www.brightpay.co.uk

Or phone: 0845 3004 304