Small employers which stage over the next 18 months could fail to sign declaration of compliance forms and be fined £400 according to Alan Smith.
The founder of First Actuarial told PP small employers need to remember their auto-enrolment (AE) duties.
The Pensions Regulator (TPR) can issue a compliance notice under Section 35 of the Pensions Act 2008 to remedy a contravention of one or more AE employer duty provisions. If the firm in question does not comply, a fixed penalty notice under Section 40 of the Pensions Act 2008 of £400 for compliance failure can be issued.
"The well-meaning employer will go through and analyse the workforce and realise they have no one who has to be auto-enrolled," Smith said.
"They do not need to set the scheme up but they do need to complete their declaration of compliance to tell TPR they have looked at their duties and have nothing to do.
"A lot of these employers may be very small. They may just have a couple of directors. It is just a step they have to take which they may not realise they have to take."
The firm's defined contribution senior consultant Simon Redfern added: "It is actually engaging them [small employers] to make sure they go through those stages to actually complete the process fully. Will they do that? How does the regulator reach them? How do we reach them?"
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