Auto-enrolment pension schemes are mandatory workplace pension arrangements that require employers to automatically enrol eligible employees in a qualifying pension scheme.
This ensures that workers build retirement savings throughout their careers. The purpose of this legislation is to increase pension participation rates and provide financial security for employees who might otherwise lack sufficient retirement provisions.
Employers must enrol eligible employees who meet specific criteria, including age (typically between 22 and the State Pension age), earnings thresholds, and employment status.
If an employee has not been auto-enrolled, several factors could be the cause. To help resolve this issue, we have compiled a list of possible causes and solutions in portal.
Employee is set to 'Exempt' at the employee level.
Check if the employee is set to 'Exempt' at the employee level. To do this, follow the steps below.
From the dashboard menu, select People Management.
Beside Employee, click VIEW.
In the Search Name field, search for the employee.
Beside the relevant employee, click VIEW.
Click Actions then click Personal Profile.
Click Payroll then click Legislative Options.
If the employee is set to Exempt on the Auto Enrolment Details dropdown, the employee will not be auto-enrolled.
To enrol the employee, make the Exempt from Auto Enrolment blank.
Click SAVE then re-run the validation job.
Auto-enrolment is not enabled
Check that the auto-enrolment is enabled for the company.
Click Settings then under UK Tax Rates, click General.
Scroll to the bottom of the page then click Auto Enrolment.
From the Options drop-down menu, select 07- Company Parameters.
For the relevant company, turn on the Apply Auto Enrol toggle.
Click Save.
If the employee does not meet the minimum age for an eligible job holder set in auto enrollment parameters. You can check the employee via the steps below.
From the dashboard menu, select People Management.
Beside Employee, click View.
To check the configured parameters, follow the steps below.
Click Settings then under UK Tax Rates, click General.
Scroll to the bottom of the page then click Auto Enrolment.
From the Options drop-down menu, select Company Parameters.
Review the Minimum Eligible Job Holder Age field.
Defaults not saved
Check if the defaults are not saved correctly. To do this, follow the steps below.
Click Settings then under UK Tax Rates, click General.
Scroll to the bottom of the page then click Auto Enrolment.
From the Options drop-down menu, select Pensions Rules.
Review the data in the Reference Item Default field drop-down menu.
Staging period is in the future
Check that staging is in the future. To do this, follow the steps below.
Click Settings then under UK Tax Rates, click General.
Scroll to the bottom of the page then click Auto Enrolment.
Review the Staging Period field.
Qualifying Earnings are below the earnings thresholds
Check if employee qualifying earnings are below the earnings thresholds as set out by the pension regulator. For more information, check for the thresholds at the pension regulator website.
If a pay code is not being counted as qualifying earnings, but should be treated as qualifying earnings, update it.
To do this, follow the steps below.
Click Settings then under UK Tax Rates, click General.
Scroll to the bottom of the page then click Auto Enrolment.
From the Options dropdown menu, Select 01 - Pay Codes.
Check to see which pay codes have been set to Non Qualifying.
Any pay codes set to Non Qualifying will not be counted as Qualifying Earnings for the purpose of Auto Enrolment assessments.
Make any changes as required then click Save.