Goodbye Payroll Stress: 401(k) Integrations Help You Automate Plan Administration
Allowing your payroll system to send and receive data with your 401(k) recordkeeping platform is both a huge timesaver and cuts down on manual mistakes made when relying on a spreadsheet. ForUsAll’s payroll integration empowers you to rely on your payroll data as the source of truth for tracking employee eligibility, individual contributions, and confirming employee deferral rates.
To zoom out a little bit, here’s what happens when there’s no integration and the payroll system and the 401(k) platform have no way to automatically talk to each other:
What happens when employees make a change to their 401(K) savings rate
(no payroll integration)
Every Time Employer Runs Payroll
(no payroll integration)
What happens when employees make a change to their 401(K) Savings rate
(yes payroll integration)
You run payroll – that’s it!
Here are three things about 401(k) payroll integration that we think you’ll really like:
1. Streamlined employee onboarding the moment they’re eligible for the 401(k) plan
From the beginning, ForUsAll has focused on making it effortless for HR and finance teams to roll out a 401(k) plan at scale. To fuel employee benefits communications, we start the clock the moment an employee is hired and set them on a multi-touch communications campaign over a month before they’re eligible to contribute. Now, without having to rely on reminders and manual calculations, you can focus on getting new hires onboarded onto their team and not worry about things like:
- When to send IRS notices and disclosures
- Employees not knowing they’re eligible for the 401(k) plan
- Manually calculating months and hours to determine eligibility
2. Stronger defense to strengthen your plan against compliance errors
Payroll integration is the gateway to automated, more rigorous compliance checks. ForUsAll payroll integration is the foundation for many of the built-in compliance tests our system runs on a daily, weekly, and monthly basis. By relying on automation and our compliance algorithms, you’ll have a dedicated resource running on top of your 401(k) plan that ensures:
- Quality checks and key nondiscrimination testing are run year-round
- Employee changes and requests are processed timely and within IRS & DOL timelines
- Errors are caught early on and with enough time to correct the plan before it’s too late
3. Updating payroll AND your 401(k) platform when changes are made
What if you didn’t need to manually update payroll every time an employee makes a change? What if a 401(k) payroll report was generated every time someone on your team ran payroll? What if the payroll report was reported to the 401(k) recordkeeper, triggering the ACH without you having to do a thing?
It’s like two-way sync where your payroll and 401(k) platform are now connected to each other, we take care of everything from the moment an employee makes a change to triggering the ACH so the employee gets paid properly and the right amount goes into the 401(k). As someone in charge of payroll, you’ll be able to automate what’s traditionally been a highly manual, time-consuming, and risky practice.
4. Get a plan that can support automatic enrollment
Finally, integration allows you to take advantage of the holy grail of enrollment tools — automatic enrollment. Without an automatic way to calculate employee eligibility, it was nearly impossible to run a fully-compliant plan that automatically enrolled employees. Imagine the error rate when it was the responsibility of a single human to calculate and track the hours of each new employee to determine eligibility. And then track when to send proper notices and disclosures before that employee would be automatically enrolled into the 401(k) plan.
With ForUsAll payroll integration, we make it possible for customers using the most popular cloud-based payroll providers to offer automatic enrollment and automatic savings escalation to their employees. We connect with many payroll providers including:
- Wells Fargo
For more on the rich functionality in ForUsAll, chat with someone on the ForUsAll team.
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