401K Contribution Reporting Solutions
The 401k plan is a tax-qualified account indicated in the Internal Revenue Code under the section 401(k). This plan is also known as the retirement savings plan and it is funded by the employer by deducting money from the employee’s paycheck before any taxes are applied. The 401k plan was first introduced in the 1980s as a supplement to pensions. This plan offers you more control when investing and saving your money as an employee.
Benefits of 401K Contribution Reporting
TRAXPayroll can readily help you with the transmission of contributions to the 401k vendor in an electronic format. Here are some of the most important benefits you can get with seamless 401k contribution reporting:
- 401k plans ensure financial security when employees retire
- Well-designed 401k plans can keep talented employees in the company
- Employees can decide how much to contribute to their retirement accounts
- Money deposited using 401k plans can grow using investments such as stocks, money market funds, mutual funds, bonds, savings accounts, and other investment options
- Participants in 401k plans can take their benefits with them when they leave a company
- Employers can take advantage of tax deductions for contributing to the accounts of the employees
How Should You Tackle the 401k Plan?
TRAXPayroll uses industry leading technology to assist you with your 401k plans. The following steps are essential in developing a suitable 401k plan for your business:
- Think about the 401k plan that may be suitable for your business
- Decide if you want to make contributions to the 401k plan you have selected. If so, decide if you want to make matching or non-elective contributions depending on your business needs
- Decide if the participants to the 401k plan will re-direct the investments of their accounts
- Provide your employees with comprehensive information about the 401k plan
- Develop a record-keeping system
- Monitor the providers of your plan’s service
- Become familiar with the fiduciary responsibilities
- Become familiar with 401k plan reporting and disclosure requirements
The TRAXPayroll Difference for 401K Contribution Reporting
To protect the interests of the participants and help you manage your company’s payroll easier, TRAXPayroll can assist you in establishing and operating a suitable 401k plan. We can also automate the transmissions of 401k contributions to save you much time and effort.
For more information about our 401k contribution reporting services, call us at 866-872-9123 today.