Fix incorrect compensation amounts for hourly employees in your Gusto 401(k)

If your hourly employees’ compensation amounts look incorrect in your Gusto 401(k) plan, here is why that happens and how to update them.

For hourly employees, our system takes the hourly rate and annualizes it based on a 40-hour work week. If employees work less than full-time hours throughout the year, the estimated salary will be higher than their actual earnings. We use this estimate so projections for plan sponsors and participant dashboards are not understated.

If you prefer to update the compensation to reflect something closer to the actual annual salary for affected employees, contact Retirement Sponsor Support, and we will help you make the change.