In-house or outsource?
If you use an agent, payroll bureau or payroll service provider, you must talk to them now about the service they will provide for you in future, and ask what you need to do to get ready for auto-enrolment. All providers should be set up to be compliant with auto-enrolment, but you may need to change your systems or the timing of the information that you provide to them.
The change to pensions is a good time to assess whether you should operate your payroll in-house or use an external provider. Alterledger can advise you on the advantages of each option and we can help you set up your own system with online software or process your payroll using the information that you provide each month.
If you run your own payroll system, you need to get pensions-enabled software in order to send your employee information to HMRC and your pension provider online every time a payment is made. You can do this in the following ways:
- Commercial payroll software, upgrading your existing software if necessary.
- Payroll service provider, such as an accountant or a payroll bureau, who will do it for you.
There are potential cost savings of operating your own payroll system, but to make sure you comply with relevant regulations you should refer to the HMRC and Pension Regulator website or get advice from an accountant or other payroll professional.