RSS Feed

Hello, my name is teaser text and you can change me!

Archives for Automatic Enrolment

How to Find the Best Auto Enrolment Accountants

0 Comments

 

What Are Auto Enrolment Accountants?

 

 

When you put “auto enrollment” and “accountants” together in one line you will have a vague idea that auto enrolment accounts are accountants that specialize in helping employers and other people auto enroll people into some sort of payment scheme.

 

While there are many cases where you can auto enroll, auto enrollment is usually done in cases of compulsory enrollment. After all, hiring auto enrolment accountants cost money.

 

What type of compulsory employment would you need an accountant for? The most obvious is pension. If you are a business with employees that you need to pay, you need to know that you are required by law to auto-enrol your employees in a pension scheme.

 

While you don’t need auto enrolment accountants to help you with this, the fact is that many small-time employers turn to their accountants for help mainly because they don’t have any idea on how to do it.

 

However, not all accountants provide that kind of service to their clients. If you have a chartered accountant or about to hire one, you will need to ask if they can help your fulfill the requirements of auto-enrolment as well asauto enrolment accountants discuss the terms of the job.

 

Auto enrollment does have its own risks and opportunities. For one, it can provide the accountant with the opportunity to advise individual employees on where to put their pension money.

 

A recent survey showed that while 74% of small businessmen expect help from their accountants on auto-enrolment, only 22% of the accountants have sent a proposal to their clients. There is a big gap in demand and supply, and if you are accountant reading this, you can create a niche for yourself in auto enrollment. Just make sure you know what type of support you’re willing to provide to your clients.

 

In general, accountants are not supposed to select the pension scheme for their clients. What they can do, however, is provide advice on scheme selection.

 

Also, an accountant is not expected to be a financial adviser and provide financial advice, like telling employees how much they are expected to earn with a particular investment.

 

If you do offer auto enrollment, the only thing you need to do is to set up the infrastructure so that a portion of employees’ salaries are automatically sent to their pension fund, and that pension fund is then used to make different investments. With this service, you do need to determine the cost, especially those around contributions, set-up, and management.

 

Aside from creating the pension scheme, you are expected to help your client communicate with their employees on the mechanics of auto-enrolment and why it is being done.

 

More than communication, however, you are expected to help with contributions and do the math on the monthly contributions, in a manner that will make sense to the employees. But it does not stop there. You need to remember that auto-enrolment is an ongoing process and it doesn’t stop with the setup of the infrastructure.

 

,