When your company is using a 401(k) outside of Justworks there are 3 major steps that should be followed:
Ensure your employee list and employees’ information is up to date with your 401(k) provider.
- It’s important for your 401(k) provider to have up-to-date census information for your employees. This allows them to administer the plan effectively and in accordance to your plan document.
- Since each 401(k) provider has their own method and template for uploading census information, be sure to work with your provider for best practices when updating this information.
Update your employees’ contribution changes manually in Justworks whenever they make changes (to make sure your employees’ selections are in place when payroll runs).
- Keep your eye out for any changes your employees may be making to their deferral amounts. When you do see those changes, you’ll need to set up or change that employee’s manual deductions.
- Instructions on setting these up are here: https://justworks.desk.com/customer/en/portal/articles/2338126-deductions
Provide your 401(k) provider with census and payroll information every time you run payroll (so your provider knows the amount of funds to withdraw from your account and how to allocate them).
- After you run payroll, you can upload our retirement report directly to your 401(k) provider’s website. Keep in mind every 401(k) provider has a different template, so adjustments to the report may need to be made.
- For more information on our retirement report and how to use it, read here: https://justworks.desk.com/customer/en/portal/articles/2804886-retirement-report
If you have any trouble, or questions, please contact your 401(k) provider or your Account Manager and we’ll be happy to assist.