Steps to complete before opening the Automatic Enrolment Configuration Tool

There are a number of steps needed before you can start the Auto Enrolment Config Tool:

1. Have a qualifying pensions scheme.

   Choose a pension scheme that you can use for automatic enrolment.

   Do this as soon as possible as it may take time.

   IRIS Software is not able to provide any advice or recommendations on pension schemes. If you have questions about your pension scheme, please contact your pension provider or pensions advisor.

2. Gather the required information.

   You will need to have:

   • Contact Details

     This is the person the employee will contact if they want to Opt In or Join the pension scheme, re-enrol or have any questions. This will be a person within the company.

     This must be kept up to date.

   • Pension Provider Information

     Some of this information will display on the letters employees receive. If the employee chooses to opt out or leave the pension scheme, they need to contact the pension provider directly.

     You cannot opt an employee out without a valid opt out notice.

     Workers cannot opt out in advance.

   • Pension Contract Information

     This determines how the pension will calculate within the payroll software and establishes if the employee will receive any tax relief. It is important to complete this as it impacts the calculation.

     This information is set when you sign up to your pension provider. If you are not sure about which box to select, please contact the pension provider for advice.

   • Postponement

     The maximum amount of time you can postpone an employee is 3 months.

   • Qualifying Earnings and Pensionable Earnings

     There are two distinct points we need to consider: Assessment and Pension Calculation.

     1. To assess the employee, we use the Earnings Trigger for automatic enrolment, which we base on the qualifying earnings elements. These elements include Salary, Hourly Pay, Overtime, Commission, Bonus, Statutory Payments etc. After assessing the employee, the trigger is no longer used.

     2. Once the employee is in the Pension scheme, the pension calculation can be based on a number of items. Some pension providers use the term Qualifying Earnings, some use Banded earnings. This is pension deducted between the lower level and upper level of qualifying earnings. This is again made up of elements like Salary, Hourly Pay, Overtime, Commission, Bonus, Statutory Payments etc.

     Some pension contracts allow you to specify the items used for the pension calculation. If this is the case, we still must use the qualifying earnings elements to assess the employee.

     The items used for the actual pension calculation are dependent on the contract agreed with the pension provider. For example, the actual pension deduction may be based on basic pay only. This is referred to in the Auto Enrolment Configuration Tool as Pensionable Earnings. There is no threshold and is based on the whole £1 of the item selected.

     We cannot assign Qualifying earnings (beyond some basic settings) or Pensionable earnings automatically as its dependent on the contract you have with your pension provider.

   • Pension Interface Information

     The information above should match what has been generated by you or your pension provider.

3. Set up the payroll calendar.

4. Licence the software.

   Please ensure you are using the latest version of your IRIS Payroll Software.
   

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   You should have received updated licensing information, this is required to use the module.

   You can complete the set-up without the licence.