If you’re wondering to yourself if you need management accounts services, the simple answer to the question is this: It really depends on where you are in the world. Because some parts of the world refer to automatic bank savings when talking about auto enrolment services. But if you live in the United Kingdom, you need it.
This is because of the British government’s initiative to supplement the pension that people are currently receiving. With the auto enrollment pension program, all employers no matter what their size are required to enroll eligible employees in an in-house pension program. Of course, this pension program should meet the government’s minimum requirements but everything else is decided by the companies themselves.
Do You Need Auto Enrolment Services?
If you’re a business owner who has eligible employees, with “eligible” referring to employees who are at least 22 years old and are regular employees earning at least 10,000 British pounds per year, you need to have a pension program in place and enroll your employees automatically into the program. (Your employees pay 2% while you pay 1%.)
Most business owners don’t have any clue on how to implement it and more often than not turn to their chartered accountants for help. However, if you really want to make your life easier, you should employ auto enrollment specialists.
If you would only do a search on Google, you will see that there are many such services out there. How do you choose which one to hire? There are several criteria that you need to consider.
An auto-enrollment company should provide all-around service that includes everything from advisory services to doing the actual work. Your service provider should design a pension scheme for you and be able to set it up for you as well. They should also be willing to work with your payroll department. If you don’t have an independent payroll department, your auto enrollment provider should have independent payroll services as well, which does all the so-called dirty work including computations.
The company that you hire should have pre-designed pension scheme “templates” that can be customized to your needs. If you rare small business, then you should take the time to find an auto-enrollment service that caters mainly to small-medium businesses.
Another thing that you need to consider is the company’s independence. What we mean is that the auto-enrollment specialist you hire should not be connected in any way to any investment company. This ensures that you have the freedom to decide on where to put your employees’ pension money. This is also ensures that you are able to find the best places to put the money in.
As you can see from above, there are many good reasons why you need to hire independent auto-enrollment services to help you comply with the government’s requirements. Now it’s up to you to decide on who to hire. Take the time to read this article again because you will definitely know what to look for when hiring.