One of the most popular benefits continues to be 401(k) plans. According to the latest SHRM annual employee benefits survey, 93 percent of organizations offer traditional 401(k)s or defined retirement savings plans, up from 90 percent the previous year. But while they’re a sought-after perk for employees, administering the plans can be a challenge for companies, and getting it right is crucial.
By combining payroll services with retirement plan administration, however, employers can reap several advantages of an integrated system:
- Compliance with Legal and Fiduciary Requirements: With automated payroll contributions to 401(k) plans, companies can ensure proper and timely transmission of 401(k) contributions for their employees. Integration backed by knowledgeable experts also improves reporting and compliance with other fiduciary obligations.
- Freed-Up Resources: With one vendor, integration is easy to set up. And by merging the two functions into a single system, companies will eliminate redundancy and streamline tasks, reducing the amount of time required for proper management. Record keeping, data entry and paperwork is also reduced so staff can focus on core tasks.
- Boosted Accuracy and Reliability: With automated data exchange, census data is seamlessly and securely transferred, making it much easier to confirm employee eligibility and entry dates for 401(k) plans. And by eliminating manual uploads, it avoids unnecessary errors to give employers greater peace of mind.
- Enhanced Census Collection Process: Integrated payroll and 401(k) data simplifies and automates the collection of salary, hours, termination dates and other census data to alleviate the administrative burden of year-end compliance requirements.
To learn more about how a fully-integrated solution works, download our Guide to CompleteK. If you’re interested in adding a retirement plan to your benefit offerings, contact Complete Payroll Solutions at 877.253.9020.