Pension auto-enrolment was introduced to give UK employees essential retirement support. But for employers, the compliance responsibilities it brought can feel like an endless source of pressure. From strict deadlines and ever-changing contribution minimums to navigating complex eligibility rules and ensuring your systems integrate seamlessly with pension providers, there’s a high risk for costly errors. Fortunately, if you outsource your payroll these headaches can be mitigated, safeguarding your compliance and putting your mind at ease.
Payroll + pensions = where frustration grows…and penalties strike
Many businesses initially assume auto-enrolment simply means an additional deduction from each payslip. Reality presents a much bigger challenge. The Pensions Regulator won’t care if errors were honest; fines still hurt your bottom line. Consider these scenarios:
Shifting eligibility
Employees age into the scheme, then maybe switch to part-time hours, later opting out…missing ANY step along the way breaks compliance rules.
Contribution updates
Government budgets may revise minimums; payroll needs to adjust BEFORE they take effect, not scramble afterwards with messy data fixes and potential underpayments triggering additional penalties.
Data entry woes
Manual syncing with your pension provider is rife with error potential. Miscommunication on employee changes leads to miscalculated deductions and can even harm employee/employer trust.
The cost of ‘getting it wrong’ goes beyond finances
When pension administration falls through the cracks, you risk:
Hefty fines
Non-compliance penalties are levied by The Pensions Regulator and escalate based on the severity and duration of your errors.
Reputational damage
Employees question if basic payroll is untrustworthy. This makes recruitment harder in a competitive landscape.
Wasted resources
Fixing an auto-enrolment mess in-house pulls vital staff from revenue-driving tasks, costing more than just the direct fine itself.
The ever-shifting landscape of auto-enrolment compliance shouldn’t derail your focus from driving business growth.
Outsource your payroll to Moore and we can offer specialised knowledge, robust systems and a proactive approach that keeps you safeguarded from costly missteps. Don’t simply manage your pension worries – eliminate them and unlock peace of mind.
Get in touch today and leave the burden of accurate, on-time pension administration to our expert team.