It’s been more than a decade since automatic enrolment came into effect, yet workplace pensions remain one of the biggest stumbling blocks we encounter when onboarding new payroll clients
You might expect that, after 10+ years, most employers would have pension compliance locked down. But that’s far from the reality. Even well-run businesses, with reputable payroll providers and diligent internal teams, often find themselves caught out by complexities that have crept in over time.
At Ascend Payroll, we’ve learned that pensions are the area most likely to trip up an otherwise clean payroll transition.
And the cost of getting it wrong can be significant, both financially and reputationally.
Why is this still a problem?
Workplace pensions are not just a ‘set and forget’ arrangement. Schemes evolve, and so does legislation. Auto-enrolment duties shift with workforce changes and admin shortcuts taken years ago can snowball into compliance risks today.
In many cases, clients are unaware of hidden issues until we start digging as part of our onboarding process..
What we’re seeing;
- Inaccurate postponement practices
- Outdated pension scheme settings
- Incorrect application of thresholds and categories
- Contribution miscalculations due to salary sacrifice changes
- Missed re-enrolment dates and incomplete communications
How we fix it
As part of our onboarding process, our pensions specialists carry out a detailed review of every scheme we take on.
We look under the hood to assess;
- Scheme administration practices
- Record-keeping accuracy
- Employer duties compliance
- Provider configuration and data mapping
Where needed, we’ll work with providers and clients to resolve gaps, clean up legacy issues, and ensure everything is aligned with current legislation and best practice.
Because payroll isn’t just about paying people – it’s about protecting your people, brand, and business.
If pensions are hiding issues in your payroll setup, they will eventually come to light – either through audit, error, or enforcement.
When we take on new clients, we will uncover all these problems so we can be sure the pension data is clean and accurate and then keep on top of any changes that may cause ongoing problems.
If you, or your payroll provider, has not reviewed your pension payroll set up, you could be in for a shock if you need to move your payroll.
