401(k) and Payroll Integration
Payroll integration can make your 401(k) plan much easier to manage. There are several types of payroll integration that can be leveraged. This infographic shares two ways; 180 degree and 360 degree payroll and 401(k) integration.
- Recordkeeping System. A participant in the 401(k) plan makes a deferral rate change request into the recordkeeping system.
- Plan Administrator. The employee’s request creates an email notice and a report to the plan administrator listing the new deferral data.
- Payroll System. The new deferral data is updated in the payroll system.
- Payroll Data. The overall payroll data is sent to the recordkeeping system which spurs the funding of the employee and employer contribution. The employee’s new deferral rate is now set and funded.
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