Bundling sounds so convenient, doesn\u2019t it? One login, one service team, one bill. It\u2019s the Netflix of plan administration \u2014 until the compliance season arrives and the algorithm starts buffering.<\/p>\n
Payroll companies love to sell the dream: \u201cWe can handle your 401(k) too!\u201d It\u2019s a compelling pitch for small employers who are tired of juggling vendors. The problem is, most payroll companies know as much about ERISA as I know about hair care. Once the integration gets messy \u2014 late deposits, missing census data, wrong deferral codes \u2014 the client realizes the hard way that convenience doesn\u2019t equal competence.<\/p>\n
I\u2019ve seen it countless times: a plan sponsor calls, furious because the DOL is investigating late contributions, and the payroll provider blames \u201ca system glitch.\u201d Translation: \u201cWe didn\u2019t know what we were doing.\u201d The truth is, payroll integration is hard. Payroll systems weren\u2019t built to interpret plan eligibility, match formulas, or vesting schedules. They were built to cut checks.<\/p>\n
Providers like to joke that when payroll gets into the 401(k) business, it\u2019s like a toddler getting into a toolbox \u2014 something\u2019s getting broken. And when it does, guess who gets called to fix it? You \u2014 the independent TPA or plan consultant who knows how the machinery actually works.<\/p>\n
Bundling will always have its place, but don\u2019t confuse it with expertise. A good provider partnership doesn\u2019t start with \u201cwe do it all.\u201d It starts with \u201cwe do this part well.\u201d Because in this industry, the best plans aren\u2019t the ones with the fewest vendors \u2014 they\u2019re the ones where every vendor knows their lane and stays in it.<\/p>\n
<\/span><\/p>","protected":false},"excerpt":{"rendered":" Bundling sounds so convenient, doesn\u2019t it? One login, one service team, one bill. It\u2019s the Netflix of plan administration \u2014 until the compliance season arrives and the algorithm starts buffering. Payroll companies love to sell the dream: \u201cWe can handle … Continue reading