Auto Enrollment Payroll Costs.
monkeypuzzle47
Registered Posts: 134 Dedicated contributor 🦉
Ok so I have several clients that want to get the Auto enrollment pensions up and running before their staging dates and as an agent I have opted for Nest. They are asking me for the cost. I literally have no idea what i should be charging then. Can anyone advise, what would be a suitable fee for operating Auto enrollment through payroll?
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Comments
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We are only just doing our first one. They have 65 weekly staff and 15 monthly. We have increased their costs by £125 per month. My thought is possibly around 5 minutes per employee per payroll run.Regards,
Burg1 -
Thank you for your response. Just spoke to a payroll provider they are charging. To set up all the figures for Pensions they are charging one of costs of 275 plus vat it seems. No change in their monthly payroll processing fee. They charge 40 per month to for payroll up to 10 staff, £5 per employee payslip thereafter.
To provide a full service i.e All admin for the Pensions….
475 initial vat admin fee. Plus £35 for up to ten employees per month per annum.
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You may want to double check this statement
"and as an agent I have opted for Nest."
You can't advise your client on which pension is best beneficial for them as that is the role of an IFA (independent financial adviser)0 -
hi yes I realise this, what it was meant to say is that Nest is the only pension provider we will be willing to work with and if the client wanted an alternative provider which is their right then we would not be able to handle their payroll.0
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Don't worry too much about this - Auto Enrolment advice is not an FCA regulated activity (see 'Am I giving advice' on the ICAEW's website here: http://www.icaew.com/en/technical/finance-and-management-faculty/pensions/practice-faqs)MinhazMoosa said:You may want to double check this statement
"and as an agent I have opted for Nest."
You can't advise your client on which pension is best beneficial for them as that is the role of an IFA (independent financial adviser)
As advisors, we are allowed to have a 'preferred provider' and are able to recommend NEST, Now Pensions, or People's Pension, or any IFA, without that being regarded 'regulated advice'.1 -
What we did with all our clients we pointed them to a IFA, but a few of them came back to us and requested if they wanted to do their payroll with NEST could we assist them to input the info up and set it up for a fee. And yes we did agree to this, but we have strictly advised them we cannot give them any advice with regard to which scheme is best etc... I think it will be worth giving clients options and find an IFA who they can talk to them if they need to know what is best fot their staff, put all in writing to cover your back as some have pointed out regarding PPI in future0
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