Automatic enrolment - Employee pension assessment
Once you reach your staging date for automatic enrolment, you must assess your employees every pay period. Payroll does this automatically for you and determines what type of worker each employee is.
Payroll assesses your employees on the pay date that falls into the same pay reference period (PRP) as your staging date. This date can be either before or after your pay date.
If your first assessment occurs before your staging date, Payroll calculates a partial contribution which is added onto the next pay run. If it occurs after your staging date a normal contribution is calculated with no partial amounts.
Payroll uses a PRP aligned to tax periods. For example, if an employee is paid weekly, the PRP is the tax week that the pay date falls into.
If the PRP is weekly, it starts on the first day of the tax week. If the PRP is monthly, it starts on the first day of the tax month, which is the 6th of each calendar month.
It’s common for the first pension deduction to be higher than you expect. This is because all staging dates are on the first day of the month and a tax month runs from the 6th to the 5th of the following month. This means the first pension deduction is for one month and five days rather than just for one month.
Payroll automatically assesses your employees and assigns a worker category. This determines whether they’re automatically enrolled, or they have the option to opt in or join.
There are three different types of workers:
- Eligible jobholder – These employees must be automatically enrolled onto your default qualifying pension scheme, and you must make employer contributions towards it.
- Entitled worker – An entitled worker can join a pension scheme if they want to, but it doesn’t have to be a qualifying scheme and you don’t have to make any employer contributions.
- Non-eligible jobholder – A non-eligible jobholder can opt in to a pension scheme. It must be a qualifying scheme and you must make employer contributions.
When you process your first pay run on or after your staging date, the Edit Pay stage > Deductions section displays the status of each employee.
If the employee has been enrolled a message appears at the Edit Pay stage of a pay run, however you can use the Manage Enrolment options to postpone them, amend their contributions or process any opt out or leave requests.
To quickly check the status each employee and if applicable what pension scheme they’re paying into and their enrolment date, you can view the Employee Status report. This report is only available once you reach your staging date.
- 1. Go to Pensions, then click the View employee auto enrolment statuses link.
- 2. Click Download Report.
Depending on your Internet browser, the PDF file automatically download to your Downloads folder or you’re prompted to save the file.
- 3. If you’re prompted to save the PDF file, browse to where you want to save it, then click Save.
- 4. Open the downloaded PDF file, then either print the report or save it to another location.