Automatic enrolment audit (Delivered by Sanctum Software)
Automatic enrolment audit
Sanctum Software check automatic enrolment compliance using anonymised payroll data. Sanctum uses the scheme setup parameters provided by the employer to calculate what contributions should have been made for each employee compared to contributions that were actually made. Sanctum then passes the findings on to the clients advisers to enable them calculate any lost investment value caused by the errors and provide guidance on how to prevent future issues.
Typical automatic enrolment errors
- Contribution increases in 2018 and 2019 not applied correctly
- Non-compliant automatic enrolment communications to employees
- Poor understanding of postponement and incorrect application
- Failure to understand the basis for the calculation of automatic enrolment contributions resulting in incorrect contributions
Trigger points for reviews
- New FDs and HRDs reviewing pension arrangements and checking automatic enrolment compliance (before it becomes their problem)
- Increased enforcement by TPR
- Fear of reputational damage often greater than financial impact
- TPR using RTI and provider data to target non-compliant employers
- TPR work with enforcement teams from DWP-NMW, HMRC & VAT
- Merger and Acquisition Activity
- Preparation / due diligence compliance checks
- Resolution of historic non-compliance before/following acquisition
To engage with Sanctum Software, email Mark Ellis ([email protected]) directly and quote CIPP.
For more information take a look at the document below.