According to one recent study, about 1 in 3 workers in the United States have made some type of early withdrawal from their 401K retirement funds – underlining the fact that proper 401K management is about more than just straightforward contributions and deductions.
As a business that depends on your employees, offering 401K solutions to help attract and retain top talent is paramount. However, it can’t come at the expense of the financial process for either party. You still need to make sure that deductions are accurate. You need to do what you can to reduce the administrative burden. You also need to work in tandem with your 401K provider or financial planner to help ensure everyone involved is prepared for the future.
Integrating 401K with your payroll company can be somewhat challenging, but it certainly isn’t impossible, provided that you keep a few key things in mind.
Bringing Together 401K and Your Payroll Company: What You Need to Know
In many cases, the process of integrating 401K with your payroll company involves choosing the right provider to work with in the first place. Most organizations will be able to integrate directly, leveraging automation to help save time and ensure all data is available in both systems.
Seamless Synchronization of Employee Data
At that point, you can seamlessly synchronize all employee census data to make it effortless to manage for all involved. Organizational leaders and administrators can track which employees are eligible for 401K offerings and which ones aren’t. They have a single system that contains personal information like birthdays, addresses, Social Security numbers, and more – all to make it easy to refer back to when necessary.
Of course, there are also benefits that directly impact the employees themselves – like a more timely investment of the contributions they’re making on a regular basis. When a payroll provider doesn’t have to wait for those funds and already has them, they can more quickly and easily add the necessary retirement plan deductions. Action can be taken sooner than before, much to the peace of mind of all involved.
Integrative Advantages: Compliance and Reporting
Speaking of peace of mind, integrating these two essential components of your business also helps with some larger administrative tasks. When all data is available and accurate, it also makes quarterly management reports easier. This also helps with compliance testing, generating participant statements, and even managing the myriad of different forms that are required to be filed each year by the United States Department of Labor and the Internal Revenue Service.
But the most crucial benefit of all is the time and money savings a business gets to enjoy. As you can see, effectively managing both 401K and payroll services takes significant time and effort to get right. Adequately integrating everything frees up the invaluable staff time to focus on core business processes – like maintaining client relationships and cementing your competitive advantage in the marketplace.
Streamlining for Optimal Efficiency
In the end, integrating 401K with your payroll company should streamline the financial process, not make it more convoluted than it already is. Deductions should be timely and accurate. Administrative employees shouldn’t have to take too much time away from more important matters. Your 401K provider and your payroll company or financial planner should be capable of working together, creating the solid foundation you and your employees need when you need it the most.
ASAP Payroll: Your Partner in Integration
If you’re ready to streamline your 401K and payroll processes, know that we’re ready to help. While ASAP Payroll doesn’t offer 401K services directly, we offer a smooth integration process that lets you efficiently include 401K deductions and contributions into an already well-defined system.
Contact ASAP Payroll today to discover how our solutions can seamlessly integrate with your 401K provider, making your financial management all the more efficient in the process.