My Bookkeeper Bill

Workplace pensions law is changing and every employer must act.

From 2012 changes to pensions law will affect every employer in the UK; these changes will help more people save for retirement. Every employer must comply with the law; this will mean new duties for the payroll administrator.

The changes mean that as an employer you must automatically enrol certain members of your workforce into a pension scheme and make a contribution towards the pension fund. The scheme must be a scheme suitable for automatic enrolment, and it must meet certain minimum qualifying standards.

A new pension scheme, NEST (National Employment Savings Trust) has been established, it is available to any employer who chooses to use it. This will enable all employers to provide a pension scheme for their workers using NEST or, where the scheme meets the necessary requirements, their own scheme or another pension provider.

Payroll administrators will be able to assist employers in meeting the obligation to ensure that certain members of the employer’s workforce are automatically enrolled into a suitable pension scheme and make sure that (employer and employee) contributions are paid to the scheme in respect of those members.

The Pensions Regulator is the UK regulator of work-based pensions. It has been running a campaign with industry representatives over the past few months to increase awareness of the automatic enrolment duties amongst employers and their advisers.

HMRC and The Pensions Regulator are working together to ensure that employers are properly supported in complying with the new duties. HMRC’s role in the process is assisting employers to register new schemes when they decide to enrol their workforce into an alternative qualifying registered pension scheme.

If you are an employer you must understand your obligations in respect of the automatic enrolment duties and be aware of The Pensions Regulator’s role in maximising compliance with those obligations.

The new duties are being introduced over four years, starting with the UK’s largest        companies in 2012; other employers will follow in 2013 to 2016.

We will make further updates known as they become available.

Companies and organisations of all sizes handle sensitive client data and should look to employ a security strategy that protects this information at all costs, without being a burden on IT resources or adding significantly to the charges passed onto the clients.

All confidential client informationneeds to be protected from malware, viruses and a whole host of external cyber threats, as well as remaining secure and confidential. However, it is also vital to consider the types of threats that can be posed by internal forces, not just external.

IT security is not something that comes as part of the job description for a bookkeeper or for any company outside of the IT profession, but many firms have no designated IT specialist. To ensure firms remain protected, a few basic rules suffice in gaining IT protection:

Keep Out Malware

Very few firms can function without computers and only in rare cases are their networks purely internal. Instead, communication with customers often requires an Internet connection, meaning that fewer firms can manage without one. It is therefore important that all computer systems are equipped with basic protection, i.e. an up-to-date virus scanner and a personal firewall. Rather than implementing multiple solutions which have the potential to be confusing and time-intensive to manage, all-encompassing protection packages can provide modules which work seamlessly together.

Before investing in security technology, a company should assess the historical and current malware detection capabilities of various anti-malware products on the market.

Security software for all sizes of firms has in the past been expensive and confusing; however it is a vital aspect of business that cannot be overlooked in today’s troublesome cyber environment.

Encrypt Records

A lot of companies handle extremely sensitive customer data on a daily basis. All this information, which is not intended for third-party viewing, should be encrypted. Encryption translates data to a secret code and is the most effective way to achieve data security. To read an encrypted file, a key or password is needed to unlock the translated information.

Due to the nature of financial data, it is perhaps the most dangerous area for a company in that if it is breached it can be used for malicious, even criminal purposes. This means that there is a risk that employees who have access to a large quantity of this data also pose a risk to the firm and its clients. Although access may be required for employees to do their jobs, it is possible to restrict access to data that is not directly relevant or necessary for them to carry out their role. By encrypting this data, it lowers the risk of an internal threat where someone takes liberties with their clearance.

Ensure Data Is Backed Up

Not only is this confidential data at risk from malware and the inside threat from employees, but it can be corrupted, lost or stolen. Therefore it is vital that firms back-up all forms of records safely and securely. Suffering a loss of client data could not only mean a loss in custom and sever reputational damage, but could ensue in a law suit or even put the company out of business.

Establish Rules

Management in most firms know which areas of their company need protecting, but what about their employees? In most cases, staff won’t be IT experts either. Two strategies are recommended here; firstly, clear rules should be established for using IT systems, these should specify prohibited activities such as sharing passwords; and guidelines for the use of, for example, USB flash drives. Secondly, rules should be backed up with appropriate security settings.

The majority of businesses activities carried out by most companies are usually built on trust. Just one instance of compromised information could really damage a firm’s reputation and relationship with its clients. Most businesses have sensitive client data on file and confidential records, but the financial implications of a breach are far-reaching in most business sectors. By following these steps, firms can ensure that they are doing everything in their power to protect themselves and their clients.