Digital retirement plan platform Vestwell has teamed up with Gusto, a payroll provider with 300,000+ business clients, to implement what the companies call a “360-degree” API-based integration.
Vestwell says it currently supports over 30,000 small businesses and one million savers and added the new integration will support both 401(k) plans and state auto-IRA programs.
“Payroll partnerships are an essential component in closing the savings gap across the country,” Aaron Schumm, Vestwell’s Founder and CEO, said in a statement. “Together with Gusto, we’re bringing a modern and user-friendly platform to the small businesses previously excluded from offering their employees an affordable workplace savings program. The Vestwell and Gusto integration not only provides a flexible offering that can be delivered through advisors and TPAs, it also creates seamless integration across the rapidly expanding state IRA solutions.”
He noted that the 360°- integration between a recordkeeper and payroll provider allows data to “flow seamlessly,” providing small business owners with a streamlined solution and saving them time (and money) to focus on running their businesses.
Risky and Time Consuming
Traditionally, small business owners manually upload their payroll files to their retirement plan provider and are responsible for tracking any changes that are made on the 401(k) platform by their employees.
Schumm said this process is time-consuming for employers and increases the risk of mistakes, something an API-based integration can solve, as information is automatically transmitted between the payroll and retirement plan platforms.
The integration also increases support for off-cycle contributions and allows consistent timing for payroll processing.
“Each pay period, Vestwell automatically receives key employee information from small businesses utilizing Gusto, including employee deductions, employer contributions, loan payments, and updated employee demographic information,” Vestwell concluded. “For instance, when employees log into the Vestwell portal and make changes to their contribution rates, this data is automatically fed back to Gusto. This enhancement also gives employers the ability to access Vestwell directly through the Gusto portal.”
