Does payroll staff need to enter the 401(k) deduction information?

For a company with many employees, if payroll staff has to enter the 401(k) deduction information into a separate database manually in each payroll cycle, it will be a long time data entry process with potential errors for just moving the 401(k) payroll deduction to the company's 401(k) plan. To eliminate this retyping step, linking the 401(k) plan to the payroll system is the best practice. You can use an outsource payroll which provides the function or an in-house payroll software to generate the database in the format which the 401(k) administration supplier can process. It will be as easy as a "click" to send the deduction data to the supplier without any potential errors.

             Main Menu            

1. In-House Payroll vs. Outsourcing

2. Accumulating Time

3. Payroll Deductions

4. Direct Deposit

5. Payroll Cycles

6. 401(k) Plan

7. Payroll Forms

8. Payroll Resources

News & Discussions:

When Credit Gets Tight, a 401(k) Loan Becomes Tempting

This year, word got out about a Visa debit card aimed at people who wanted to borrow money from their 401(k) accounts. With plastic in hand, they could withdraw the funds from an A.T.M. or spend them at any merchant that accepted Visa, just as they could with a regular bank debit card.

Paychex Offers Auto-Enrollment for 401(k) Plans

Payroll-processing service Paychex has added an auto-enrollment feature that allows employers to automatically sign up employees to participate in a 401(k) plan.