Your Gusto 401(k) connects directly to your payroll to automate deductions, contribution tracking, and employee data syncing. This article covers how the payroll connection works, what information is shared, and how to notify us if you change payroll providers.
How your 401(k) connects to payroll depends on which provider you use. Some plans sync automatically, while others require manual uploads.
Gusto payroll and Gusto Embedded providers
With the Gusto 401(k) and Gusto payroll, you get our most seamless experience — including automated, real-time deductions and contributions, streamlined payroll runs, and a unified dashboard under one login.
We also offer an integrated experience for businesses using a Gusto Embedded payroll provider (HiBob and HR for Health). These plans benefit from automatic real-time syncing of employee data and payroll reports, as well as automatic updates for contribution rate changes.
Self-service plans
If you do not use Gusto or one of the Gusto Embedded providers listed above, your plan may be supported as a self-service plan. With a self-service plan, your business is responsible for manually uploading payroll reports and making contribution rate updates. Learn more about the requirements and processes for a self-service plan.
When you connect your payroll account with your Gusto 401(k) or an embedded provider, your employees' information automatically syncs so we can manage the day-to-day administration of your plan.
The integration handles the following automatically:
Employee deferral elections pull directly to payroll
Your plan's roster updates automatically when employees are hired or dismissed, based on employee census records in payroll
Payroll reports are sent to your 401(k) without any additional action on your part
Off-cycle payrolls outside your normal schedule are captured and processed without the need to notify us
Know what information is shared
Your 401(k) plan relies on information you enter into payroll, so make sure all employee details are complete and accurate. The information needed includes, and is not limited to:
Full name
Email address
Date of hire
Salary
Employment status
We use this information to:
Send enrollment materials to eligible employees
Onboard employees
Communicate important plan information
Conduct annual compliance testing
Once an employee claims their 401(k) account, updates made to their contact details in payroll may not sync to the 401(k). Employees should update their contact information directly in their 401(k) participant dashboard under Settings.
Up-to-date payroll information is critical for smooth plan administration. If your company is switching payroll providers, notify us as soon as possible — ideally at least 4 – 6 weeks before making the transition.
Switching providers may result in administrative and fiduciary changes to your plan, and how we can service your plan may vary depending on where you move.
Switching to Gusto or a Gusto Embedded provider (HiBob or HR for Health): Your 401(k) connection will continue. We'll need to establish the new connection with your new provider.
Switching to a non-Gusto payroll platform: Your 401(k) will continue, but you'll need to transition to a self-service plan. Learn more about what changes when you switch to self-service.
The steps to submit a payroll change request differ slightly depending on how you access your 401(k) administrator dashboard.
To change your payroll provider, follow these steps.
Sign in to Gusto.
Go to Benefits.
Under Active Benefits, find 401(k) and select Manage.
In the top navigation, select Settings.
Scroll down to Payroll Connection and select Manage payroll provider.
Select Change provider, then complete the workflow to provide all necessary details.
To change your payroll provider, follow these steps.
Sign in to your Gusto Retirement administrator dashboard.
Go to the Payroll tab in the main menu.
Select Change provider, then complete the workflow to provide all necessary details.
Helpful hints for completing the workflow:
Last pay date: the last pay date you have processed or will process with your prior provider
First pay date: the first date your employees will be paid by your new provider (this is not the transition date)
Once you submit, complete any task that appears on your 401(k) dashboard to finalize the connection with your new provider.
Q: Why hasn't a task appeared on my dashboard to connect or provide access?
A: A task will appear on your dashboard once we have received and processed your final payroll run with your prior payroll provider — which would have been the date you entered in the last pay date field. Once processed, a task will appear with next steps.
Q: How far in advance should I complete the payroll change workflow?
A: It depends on where you are switching:
Switching to a Gusto Embedded provider: submit a payroll change request at least one week before your first payroll with your new provider
Switching to a self-service plan: submit a payroll change request at least two weeks before your first payroll with your new provider to make sure we can manage employee contributions without service interruptions
If you've already processed your first payroll with your new provider, complete the workflow as soon as possible and reach out to us with any payroll reports from that provider so we can make sure all contributions are collected.
Q: What does it mean when my task says “Waiting for review”?
A: Our payroll team is currently processing your request. The status will update once their review is complete.