Workplace pensions: what sits inside the payroll process

Workplace-pension obligations are continuing. Employers monitor age and earnings, manage join and leave requests, maintain records, make contributions and consider re-enrolment every three years.

A client may appoint a provider to help administratively, but the employer remains legally responsible for completing applicable declaration and re-declaration duties correctly and on time.

Payroll-led administration can include support for assessing staff against automatic-enrolment criteria, calculating employee and employer contributions from approved payroll information, preparing provider files or schedules, and handling the payroll workflow around joiners, opt-ins, opt-outs, applicable refunds and contribution changes.

Axiom does not choose a scheme, act as a pension provider or trustee, or give regulated pension, financial, investment or tax advice.

Re-enrolment is a periodic employer duty. Employers must assess whether certain staff who are not active members of a qualifying pension scheme should be put back into a scheme. A related re-declaration is generally required. This generally occurs every three years.

Administrative support and reminders can be agreed in the service schedule. They do not remove the employer’s legal responsibility.