HCM/Payroll platforms will benefit from including these fields in their retirement plan data feeds. Adherence to these industry best practices will reduce the number of requests for exception reports and streamline 180/360 data exchanges with 401(k), 403(b), and Government 457 plan service providers.
Businessowners, CEOs, and CFOs stand to gain from dedicating the right talent and resources to payroll administration. In many sectors, labor cost is the biggest expense. A financially unwell workforce can result in more frequent absences, lower productivity, delayed retirement, higher cost, and loss of competitiveness. With the proper payroll systems and data exchange in place, a host of administrative processes can be streamlined. In particular, 401(k) plan administration can benefit.
To help administer payroll processes associated with 401(k) and 403(b) plans, retirement plan service providers customarily submit a return file to HCM platforms in what is often called Payroll 360 service. This VIEWPOINT lists the 14 elements in this data feed, and discusses the standard data exchange process.
This VIEWPOINT lists the contribution and compensation data fields that employers and their payroll processing service providers exchange with 401(k) service providers every pay period. Employers, their HCM/payroll software platforms, and their payroll processing service providers will benefit from including all these elements in their 401k/403b/457 data exchange templates.
To receive best-in-class client service, client employers need their payroll processors to include in their payroll 180 file template the fields that most 401(k) and 403(b) retirement plan service providers request. At the very least, the template must include the data fields that ALL retirement plan service providers request from clients with every pay period. This VIEWPOINT addresses indicative data, fields other than contribution, compensation, and loan amounts.