Payroll providers promise that if you use their 401k program, they will submit the contributions each payroll period and they’ll send enrollment packets to eligible new employees. Also, they will approve any loans and distributions.
You don’t have to do anything! What could be better?
What payroll providers fail to mention is what they don’t do for you:
- Payroll providers don’t monitor your investments. You’ll stay in poor-performing funds until you ask for a change.
- Payroll providers don’t guide you when you submit your annual Form 5500. Do you know what you are signing?
- Payroll providers don’t monitor changes in tax law so they can recommend a new design if your plan no longer fits your needs.
- Payroll providers don’t act as fiduciaries. They have no legal obligation to stand by their work and serve your best interests.
The above omissions could have disastrous effects on your plan. Many organizations on payroll company plans incur time and expense to correct errors and switch to a well-designed, compliant plan that produces results.
Fortunately, you can have the benefits without the liabilities. Qualified Retirement Plan Consultants combine payroll integration services with smart guidance and plan monitoring at reduced risk.
You don’t have to do anything! What could be better?