The Perks of 360° Integration of Payroll and 401k Administration
February 27, 2020
As a 401(k) plan sponsor, it is easy to become overwhelmed with all of your responsibilities that comes with it – educating employees, staying compliant with regulations, following plan terms, handling participant contributions and much more. With the help of some automation you can ease some of this burden by integrating your payroll and 401(k) recordkeeping activities.
Through the use of 360° integration, data can flow in both directions between your payroll provider and the 401(k) recordkeeper – simplifying your responsibilities. Outlined below are three major benefits to leveraging 360° integration:
1. Data collection is simplified. Instead of wasting time with the collection of salary, hours, termination dates and other census data needed to complete your year-end compliance requirements, bi-directional sharing of this information between your 401(k) and payroll system improves efficiencies.
2. Reduces your responsibility. Administrative responsibility and error-prone duplicative data entry are minimized by seamless electronic data transfer of census data between the two systems.
3. Ensures compliance. Legal and fiduciary compliance is easier to maintain with proper and timely transmission of 401(k) contributions for their employees.
Some may think directly engaging your payroll processing company as your 401(k) recordkeeper could be beneficial. But, does that really make the most sense? There is a lot more to running a successful retirement plan than just managing the payroll contributions. However, you don’t have to hire the same company to run payroll and your 401(k) to realize these efficiencies.
DM Payroll Solutions offers 401(k) 360° integration reporting that helps simplify compiling sensitive employee data for transfer to your 401(k) recordkeeper.
Our system allows us to directly integrate with all major third-party 401(k) recordkeepers — providing for seamless data sharing between systems to eliminate frustrating data submissions, and expedite plan deposits and year-end compliance requirements.
To learn more about DM Payroll Solutions 360° 401(k) reporting integration, contact a representative today.