We know small business owners are constantly looking for ways to save time. Streamlining benefit and payroll processes by integrating 401(k) with payroll is a great way to do exactly that.
When your payroll system and 401(k) administration are integrated, employee information, such as contribution rate or hours worked, flows between the two providers seamlessly and efficiently.
Benefits of integrating 401(k) with payroll include:
- Saves time and money by eliminating the need to manually enter data twice, so you’ll have more time to focus on your business.
- Reduces errors by automating the transmission of contributions and collection of required data.
- Minimizes administrative tasks for you because BPAS makes it easy to track participant eligibility, enrollment, and loans. Any changes made by the employee are automatically sent to MP.
- Timely investment of employee 401(k) contributions are made because BPAS can quickly and easily make the necessary retirement plan payroll deposits. Non-payroll integrated plans may run into DOL/IRS compliance issues with getting contributions in on time due to lack of efficient and automated payroll deposit processes.
360° Payroll Integration
When a payroll provider is 360° integrated, the data exchange is full circle—from MP to BPAS and back to MP.
After an employer uploads their company’s employee census data, they will have very minimal involvement, as the processing is handled for them. If an employee makes any changes to their account, BPAS will send the updated information directly to MP to update.