The Pensions Regulator (TPR) recently examined the issue of how to help HMRC's Basic PAYE Tools (BPT) users avoid fines and penalties. BPT users currently use a tool that lacks adequate functionality to perform the duties required for automatic enrolment. It is recognised that it is not mandatory for BPT users to have suitable payroll and auto enrolment software. However, TPR agrees that appropriate software tools will support and aid an employer to comply with their AE duties and the law. A quote from TPR consultation confirms;
"The BPT will not be updated to provide automatic enrolment functionality.We are aware of one free-to-use commercial payroll software package that supports both automatic enrolment and PAYE. There are several more low-cost payroll products where no additional charge is made for automatic enrolment functionality”.
The Risk for the Employer
There will be many risks and consequences for employers who do not use suitable payroll software tools to carry out their AE duties. TPR offers an AE toolkit for BPT users but the system is manual and lacks any automation to handle many of the tasks that are required including employee assessment, communications and integration with AE pension schemes. A recent BrightPay article examines the Limitations of the AE Toolkit for HMRC Basic PAYE Tools users. The Regulator explains;
"Attempting to assess their workforce and calculate contributions manually could lead to errors, burden and non-compliance."
Without software in place HMRC's BPT users will have difficulty processing the auto enrolment worker category and calculating contribution figures for each employee. There is an obvious difficulty for the BPT employers to comply with AE without software support.
BrightPay helping HMRC Basic PAYE Tools handle Automatic Enrolment
Moving from one payroll system to another can seem daunting; however with BrightPay the process is seamless. Exporting and importing employee details from BPT to BrightPay takes less than one minute.
Once an employer's data has been imported, full visibility of the employees’ details will be accessible on the payroll interface in BrightPay. The employer then simply needs to enter their staging date. Users benefit from fully integrated payroll and auto enrolment which caters for the tasks required to comply with the law. Read more about Auto Enrolment in BrightPay.
Pre-Assessment Report: BrightPay can produce a report prior to the staging date that details the worker category for each employee, along with estimated employee and employer contributions. This overview gives users a picture of what automatic enrolment will look like at staging. Example of BrightPay's Pre-assessment Report
Basic PAYE Tools users will find that automatic enrolment is easy with BrightPay. If you have three or less employees, BrightPay offers a free licence that includes full functionality and full access to email support.
For employers with over three employees, the BrightPay standard licence is cost effective at just £99 per tax year with unlimited employees. Every BrightPay licence has free auto enrolment functionality, a free pre-assessment tool plus a super easy HMRC import facility.
No Hidden Charges
With BrightPay there are no additional charges for the auto enrolment functionality. You can read just how happy our customers our on our BrightPay testimonials page. Why not book an online demo with our team. Discover how BrightPay can export from HMRC Basic PAYE tools and complete Automatic enrolment assessment and produce communications in minutes. The online demo only takes 20 minutes to complete.