This article is for Full Access admins who want to set up a Gusto 401(k) for their company.
Your Gusto 401(k) connects directly to your payroll. Contributions are updated automatically with each payroll, and both employers and employees can access their 401(k) dashboards from Gusto. Learn more about pricing and plan options.
Note: Each state has different rules for offering a 401(k). Contact our retirement specialists to learn more and set up a plan that meets your state’s rules.
If your company already offers a 401(k) through another provider, you have two options:
Set up manual payroll deductions to collect employee contributions.
Move your current plan to Gusto's 401(k) by following the steps in the Set up a Gusto 401(k) section of the article.
You must have Full Access admin permissions in Gusto to set up a 401(k).
To set up a Gusto 401(k):
Go to Benefits.
Click 401(k).
The next step depends on your situation:
To set up a new 401(k): Click Explore 401(k) plans.
To connect your existing Gusto 401(k): Scroll down and click I already have a 401(k). Then select Gusto 401(k) powered by Guideline.
After your plan’s start date, the new 401(k) benefit appears in the Benefits section of your Gusto admin account. Once the plan starts, you can view enrollment and contribution data in Gusto.
Important: Employee elections sync to Gusto a few days before your plan’s first check date. Contact our retirement specialists if you have questions about this timeline.
Admins can view their company’s 401(k) plan details in Gusto after the plan starts.
To check your company’s 401(k) enrollment and contributions:
Go to Benefits.
Under Active Benefits, find 401(k) and click Manage.
To view more details or make changes, click Manage 401(k).
To view deductions and contributions, run a payroll journal report in your admin account.
Your 401(k) and payroll accounts work together with a single login. You can use Gusto Single Sign-On (SSO) to access your dashboard at my.guideline.com.
To access your 401(k) dashboard from Gusto:
Go to Benefits.
Under Active Benefits, find 401(k) and click Manage.
Click Manage 401(k).
To sign in to my.guideline.com directly:
If you already have a Guideline login, keep using it to access your account.
To sign in with your Gusto login, click Log in with Gusto.
This section covers how to run payroll, fix missing deductions, handle new hires and dismissals, and manage your Gusto 401(k) plan.
After your plan starts, we automatically deduct employee contributions and record company contributions when you run payroll. The day after the check date, we debit your company for both employee deductions and company contributions. We invest the funds in employees’ 401(k)s the following day. Contact our retirement specialists if you have questions about debits or plan funds.
Payroll deductions may be missing for several reasons:
Your plan has not started yet. To confirm the start date, go to Benefits in your Gusto account and select 401(k).
The employee may not yet meet your plan’s eligibility requirements.
The employee has not enrolled.
You ran payroll before we processed the enrollment or deduction change.
Since taxes are applied before deductions, they may have reduced the employee’s net pay to $0.
Reimbursements are not eligible for 401(k) deductions.
The employee reached the IRS annual contribution limit. After they reach this limit, the 401(k) no longer appears in the employee’s Gusto account. To confirm, go to the Benefits section of your Gusto account and choose 401(k), or check the year-to-date tax summary.
Once a new hire meets the eligibility requirements, they receive an email to opt in or out of the 401(k).
If contributions have not started for a new hire, they may not yet meet your company’s plan requirements. This can also happen if the new hire enrolled after you ran payroll for the pay period.
The dismissal date syncs automatically to the 401(k). After their last day of eligibility, employees have options to roll over their 401(k) to another provider or keep it with Gusto.
We make regular 401(k) contributions on a dismissal payroll.
Note: Severance payments are not eligible for 401(k) deductions. You must use the Gusto-provided severance earnings type to automatically block deductions and contributions for severance payments.
Contact our retirement specialists to change any of your company’s policy settings.
Important: You cannot change deductions or the company match for a specific payroll. Plan documents require that you include employee deductions and the company match on every payroll, including off-cycle payrolls.
If your company over-contributes to plans, we usually apply the extra amount to the plan’s “Surplus Cash” account in the 401(k). This helps avoid paying taxes on over contributions. We use this amount towards your next payroll’s contributions.
If your plan allows participants to request loans, employees can contact our retirement specialists to apply for a loan. We notify employees when they need to start repaying and provide them with instructions. If we collect loan repayments through payroll deductions, the employee will find post-tax loan deductions on their paystubs. Check the terms of your loan or contact our retirement specialists to confirm the repayment method.
If your plan has fewer than 100 participants, we’ll file Form 5500 for your company. If your plan has 100 participants or more, we do not manage the Form 5500 audit. Click here to learn more.
For payroll data to sync, you must set Gusto as your payroll provider for the 401(k). If you changed your payroll provider after starting your 401(k), update your provider in your 401(k). Contact our retirement specialists if you have questions about this process.
Q: Does Gusto's 401(k) support CalSavers, OregonSaves, and other state programs?
A: We offer plans in these states that satisfy state requirements. Gusto plans offer several advantages over state plans, including support for Safe Harbor, higher contribution limits, and lower participant fees. Contact our retirement specialists to learn more.
Q: Can I set up flat dollar amount contributions?
A: Flat dollar amount contributions are allowed only for plans without a company match. Contact our retirement specialists to turn on dollar amount contributions.
Q: Can I change an employee’s deductions on a past payroll?
A: No. Once an employee receives their pay, you cannot change the deductions.
Q: How do I update an employee’s name in the 401(k)?
A: Update the employee’s name in Gusto. Once you update it, the employee needs to contact our retirement specialists to report the name change. Click here for more information.
Q: Can employees make 401(k) contributions for prior years?
A: No. Check this resource for more information.
Q: Why was my employee’s paycheck missing 401(k) benefits?
A: Learn how to fix missing payroll deductions.
Q: Who should I contact with questions about my 401(k)?
A: Contact our retirement specialists for questions about these and any other topics:
Notifications in your 401(k) portal
Employee enrollment or elections synced to Gusto
Plan funds
Q: Where can I find the terms of service (integration agreement)?
A: To find the integration service provider agreement:
Go to Benefits.
Click 401(k).
Click Manage 401(k). We automatically sign you in to your 401(k) dashboard in a new tab.
From the Dashboard, go to your Resource Library.
Go to Your Plan Information.
Gusto and Guideline work together to help you manage your Gusto 401(k) powered by Guideline. Here’s how we can help.
When to contact Gusto directly
Contact Gusto directly for questions about:
401(k) calculations on payroll
Why 401(k) deductions were not applied
Payroll corrections
Examples:
“How did you calculate my employee’s 401(k) deduction?”
“Why didn’t my employee’s check have deductions?”
“I overpaid my employee and need to reverse their payroll.”
When to contact our retirement specialists
Contact our retirement specialists at Guideline for questions about:
Your 401(k) plan
Syncing benefits to payroll
Payrolls syncing to your 401(k) plan
Plan funds, including debits
Employee eligibility
Changes to your 401(k) plan
Examples:
“When does our plan begin?”
“Our company set up a new plan. When can I expect our benefits to show in Gusto?”
“My employee enrolled, but their benefits have not synced to Gusto yet. When will their benefits sync?”
“My employee updated their elections. When will the new amounts sync to payroll?”
“Why did you debit this amount for 401(k) funds?”
“When can my new hire enroll?”
“We would like to update the employer match.”
“When will this payroll sync to the 401(k)?”
How to contact our retirement specialists
Admins: Submit a contact form, email [email protected], or call (888) 228-3491, extension 2.
Employees: Email [email protected] or call (888) 344-5188.