Why is AE auditing so important?
AE software being updated and changes to payroll providers as well as HR and payroll staff are all areas of risk. This means that your AE processes may not be working as efficiently as they could be, or could potentially even in breach!
Regular checks
Recently, the importance of regular AE auditing came to light. A new payroll administrator was trying to streamline her processes and she could see that since she started her job, every new member of staff was assessed and everyone was enrolled. She decided that the assessment was a waste of time so she just stopped, but no one was made aware of this change. She continued to enroll everyone in the pension whatever their circumstance. Once conducted, the audit uncovered this and found that 14 members were enrolled in error.
Other problems with record keeping, statutory communications and certification can be identified through the audit process and we recommend that this is undertaken around every three years.
The author is Sue Pemberton, head of employer services at Premier.
This article is provided by Premier.
In partnership with Premier Benefit Solutions
Premier is an employee benefit, pensions & wealth management group of companies.