Engagement Letter – Payroll and Auto-Enrolment

A covering letter and schedules setting out exactly which payroll and pension tasks you carry out for an employer client, what the employer must do (and remains legally responsible for), the payroll timetable and the data protection terms that apply to employee data.

• Taking on a new payroll or auto-enrolment client, including directors-only payrolls
• Changing the scope of an existing payroll service, such as adding pensions or benefits in kind
• Re-papering clients after the 2026 statutory sick pay and employment law changes

• Tick the payroll and pension services agreed in Schedule 1
• Fill in the pay frequency, cut-off dates and contacts in Schedule 2
• Check thresholds and rates in placeholders each tax year
• Make sure your Standard Terms include data processing terms