Benefits of integrating a small business 401(k) with payroll

Benefits of integrating a small business 401(k) with payroll

As a 401(k) plan sponsor, one responsibility you face is to make sure that you and your employees stay educated and equipped with the right tools to put everyone on a secure path to retirement readiness. But how do you do this while running your 401(k) plan with maximum efficiency? Wouldn’t it be great if one simple solution—paired with your current payroll processing—could process and update records, handle participant contributions, and stay compliant with whatever new rules and regulations get tossed your way?

Well, integrating your 401(k) plan administration with your payroll process can do all of that. Plus, integration gives you more time to take care of what’s really important—running your business.

Benefits of integrating a payroll processing with your 401(k) plan

In a perfect universe, 401(k) administration is a seamless, 360-degree service between payroll and 401(k) plan processing. The necessary data that needs to go to the 401(k) providers from payroll (and vice versa) every pay period would be efficiently transferred, with very little effort from the business owner. However, this isn’t always the case. Many business owners utilize separate payroll services and 401(k) plans, meaning that communication with both is necessary whenever money flows between the two. But when you integrate the two services, you get the best of both worlds. The fully integrated services streamline the transfer of data and offer an attractive bundle: a payroll solution and retirement savings plan all in one.

But how does it work? The synchronized integration process provides the connecting points to a virtual two-way communication highway—linking and synching employee information at every stage of the retirement savings process. Information is moved from the employee to the plan sponsor, then to the investment provider, and back again, while protecting the integrity of the data and significantly decreasing the risk of errors.


When the payroll system and 401(k) administration are integrated, employee information can be immediately uploaded in the onboarding stages, and plan participants can begin contributing as soon as eligibility requirements are met. When there are changes to the plan, such as updated employee contributions, the changes are immediately acknowledged and the records are updated. Plan sponsors and participants are kept up-to-date with information that will keep them on track to meet their retirement goals. 

401(k) plan with integrated payroll processing

The benefits of integrating your 401(k) plan with payroll processing are clear, but finding the right 401(k) plan administrator with a history of successful payroll integration is key. CoPilot, powered by PAi, takes a customer-centric approach by offering a built-in integration solution, giving you more time to run your business and less time to spend managing the plan.

If you’d like to learn more about how CoPilot can help your small business integrate payroll processing with a retirement plan, don’t hesitate to contact us online or call one of our specialists at 800.236.7400.

Molly Groves, MBA – Partner Account Manager, Growth Process – Phone: 800.236.7400 Ext. 3490.

Molly is a subject matter expert on 401(k), partner relationship management, integrated services, and the overall payroll industry landscape.