Divider
Divider

Payroll and 401(k) Integration — An Efficient Process

Review reasons that payroll and 401(k) integration makes sense for businesses.

June 14, 2010
by Heidi Parton, and Compliance and Marketing Divisions, Paychex, Inc.

The elements and information required for payroll processing make it a perfect platform for 401(k) plans and a range of other benefits. It would be hard to argue that having two different vendors for payroll and 401(k) would be more efficient than having one. Some reasons that payroll and 401(k) integration makes sense for businesses:

  • Ease of use. Just like payroll processing, employers only need to communicate to their customer service representative once each pay period. Deferral amounts or percentages are updated in the payroll system, so they can be automatically deducted from and deposited to participant 401(k) accounts.
  • Accuracy. Having payroll and 401(k) data transmitted automatically increases accuracy by reducing manual errors.
  • Security. As fiduciaries of their 401(k) plans, business owners have the same responsibility to secure information as they do with payroll. Integrating payroll and retirement plan administration to a trusted payroll processing firm can ease some of the burdens of business ownership.
  • Time savings. The time it takes business owners to calculate contributions each pay period, prepare and deliver contribution payments, process participant change requests and generate periodic government reports could instead be spent on revenue-generating activities.
  • Cost savings. Consider the potential savings related to: hours spent gathering payroll data related to 401(k) contributions, time spent on a 401(k) vendor’s web site entering data and the cost of a keying error (along with the time to correct errors).
  • Employee benefits. Payroll integration is an effective and timely way to transfer salary deferrals to the plan’s investments.

Let Paychex Help

Paychex offers seamless 401(k) plan and payroll integration, meaning that your clients save time and minimize errors by dealing with one company. Paychex provides:

  • Automatic enrollment options.
  • Ability to work with most financial advisors.
  • Quarterly compliance testing, management reports and participant statements.
  • Employer and employee support via telephone and dedicated website.

Start Now!

Consult with your clients and educate them on the advantages of benefits outsourcing and integration. With Paychex Retirement Services, you can provide your clients — no matter what size business they have — a broad range of competitively priced 401(k) plan options to meet their needs. And with payroll integration, your clients get support, flexibility and convenience all in one place. Paychex provides you with resources to help your clients meet their retirement goals, while maintaining your role as the primary relationship manager.

Explore Paychex Today!

To learn more about Paychex Retirement Services and how your clients and their employees can benefit from a Paychex 401(k), contact your local Paychex representative at 877-264-2615 or visit www.paychex.com.

Paychex is proud to be the exclusive provider of retirement services for the firm-based AICPA Member Retirement Program, and preferred provider of payroll and retirement plan services for CPAs through the AICPA Business Solutions Partner Program.

The material contained above is current only as of the date of publication. These materials are for informational purposes only. They are not legal advice and should not be relied on as such. You should contact your attorney to obtain advice with respect to any particular issue or problem.