Payroll alerts

Without awareness and monitoring of workplace pension duties, a small oversight could result in an expensive yet avoidable mistake. Provestor payroll has a number of innovative features to protect you.

The rules for automatic enrolment aren’t overly complicated for most businesses. However, once your company payroll is setup, should an eligible employee’s salary exceed the threshold for automatic enrolment, a workplace pension scheme must be set-up and your employee enrolled.

If a salary exceeds the threshold, even if your employee told you in advance they’ll opt out or your workplace pension scheme, you must still open a scheme and enrol them. Only then can they request to opt out.

Preventing accidental automatic enrolment

All it takes is for a salary to be a penny over the threshold for a business to be faced with opening a scheme and enrolling the employee. This is probably time and money they'd prefer not to lose.

For peace of mind and to reduce the chances of an expensive mistake, we’ve added a number of features to Provestor payroll to alert and protect you.

Payroll alerts and protection are enabled automatically. The risk of accidentally triggering the need to open a scheme will reduce significantly.

Automatic enrolment alerts

When editing employees payslips, you will be alerted if any changes to salaries would exceed the thresholds for automatic enrolment. When an alert is triggered, you won’t be able to save your payslip until the salaries are reduced to below the threshold.

If an employee needs to be paid a salary over the threshold, you’ll need to set-up a workplace pension first. In this instance please contact your Account Manager.

Payroll restrictions

Unless a workplace pension scheme has been set up, employees (non directors) salaries, overtime and bonus payments will be limited.

If an employees income (excluding expenses) exceeds the thresholds on your payroll date, before their payslips are sent to HMRC via RTI they will automatically be reduced to the threshold unless you have contacted us to set up a workplace pension scheme.

To alert you of the limiter being activated, a dashboard message will prompt you to take urgent action. Altering the employees salary or opening a workplace pension will stop the salary limiter being applied.

There are situations where automatic enrolment applies that our payroll cannot monitor. For example, workers not on payroll such as self-employed contractors may need to be enrolled. As an employer it’s important you are aware of the legislation and how it affects you. The Pensions Regulator website has further information for employers.

Disabling alerts and limits

Once a work place pension scheme has been opened and configured in Provestor, the payroll protection is removed.

With a scheme in place, your payroll will calculate employee and employer contributions and we’ll take care of submissions to your pension company. Please note additional fees apply for support with running a workplace pension – please contact your Account Manager for details.

Was this helpful?