When your company is using a 401(k) plan 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 with 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 to accurately update 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.
- Provide your 401(k) provider with census and payroll information every time you run payroll
- This allows your provider to know 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.
If you have any trouble, or questions, please contact your 401(k) provider or your Account Manager and we’ll be happy to assist.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.