Gusto partners with Guideline to offer a fully integrated 401(k) solution. Contributions automatically sync with payroll, and both employers and employees have access to 401(k) dashboards within Gusto. Learn more about pricing and plan options on Guideline's website.
If you already offer a 401(k) through another provider, you can manually set up payroll deductions to collect employee contributions. You can also transfer an existing plan Guideline with the steps below.
A 401(k) is an employer-sponsored retirement plan that lets eligible employees save and invest part of their paycheck. Contributions are deducted from an employee's gross pay and put into a 401(k) account.
The maximum contribution an employee under 50 can make is $22,500 in 2023 ($20,500 in 2022). If the employee is over 50 they may make an additional catch-up contribution of $7,500 in 2023 ($6,500 in 2022).
A Roth 401(k) is a post-tax employer-sponsored retirement plan that lets eligible employees save and invest part of their paycheck. Contributions are deducted from an employee's check after federal and state taxes are calculated. If the deduction is based on a percentage, we use gross pay to calculate the amount that will be deducted from the employee's net pay.
In some plans, the employer may also contribute by matching up to a certain percent of the employee's contribution. The maximum contribution an employee under 50 can make is $22,500 in 2023, and ($20,500 in 2022). If the employee is over 50, they may make an additional catch-up contribution of $7,500 in 2023 ($6,500 in 2022).
Custodian: The financial institution holding the 401(k) funds.
Plan participant: An employee enrolled in the 401(k) plan.
Plan sponsor: The designated administrator in charge of the employer’s 401(k) plan.
When you're ready to set up a new 401(k) plan, follow the steps below to set up a new plan that automatically integrates with payroll.
You must have Full Access admin permissions in Gusto to set up the integration.
The new 401(k) benefit will be listed in the Benefits section of your Gusto admin account after the plan's start date, and then you can view enrollment and contribution data.
Running payroll after the plan's start date
If you have questions about when to run the first payroll that should deduct employees for 401(k) contributions, reach out to Guideline to confirm.
Once the plan’s start date has passed, running payroll in Gusto will automatically deduct employees for their contributions and record the company contributions. The day after the check date, Guideline debits the company for the employee deductions and company contributions. Guideline invests the funds in employees’ 401(k)s the next day.
Q: Does Guideline support CalSavers, OregonSaves, etc.?
Guideline can provide plans in these states that satisfy the state requirements. There are several advantages to a Guideline plan over the state plan (support for Safe Harbor, higher contribution limits, lower participant fees, etc.) Contact Guideline to learn more.
Q: Can I set up flat dollar amount contributions?
Guideline allows flat dollar amount contributions only for plans without a company match. Reach out to Guideline to activate dollar amount contributions.
When you are ready to transfer your 401(k) plan to Guideline, follow the steps below. If you'd like to transfer your 401(k) plan to another provider, reach out to that provider directly for next steps.
If you've set up an integration between Gusto and your 401(k) provider, you can see your plan's high-level details of your plan in Gusto after the plan's start date. If you have questions about your plan or need to make any changes, please reach out to your provider directly or visit their help center.
You can also view Guideline deductions and contributions from the Reports section of your admin account, under Payroll journals.
Troubleshoot missing payroll deductions
There are a few reasons why there may not be payroll deductions:
Gusto automatically sends eligible new hires' info to Guideline. Once the employee is eligible, Guideline emails them with instructions to log in and opt in or out of the benefit.
If contributions haven't started yet for a new hire, they may not yet be eligible to enroll per your company's plan settings. This could also be because the new hire enrolled after your payroll admin already ran payroll for the pay period.
The dismissal date automatically syncs to Guideline. After their last day of eligibility, Guideline will send the employee their options to roll over their 401k to another provider or maintain it with Guideline.
Change contributions or policy settings
Reach out to Guideline to change any of your company's policy settings.
Changing deductions or the company match for a specific payroll: this is not supported per 401(k) plan policies. Guideline plan documents require that employee deductions and the company match cannot be blocked on any payroll, including off-cycle payrolls.
If your company over-contributes to plans, the surplus is most commonly applied to the plan's "Surplus Cash" account in Guideline. This is to mitigate the risk of having to pay taxes on the over contributions and will be used towards the next payroll's contributions.
If your plan allows participants to request loans, employees can reach out to Guideline to apply. Once the employee reaches the repayment stage of the loan, Guideline will notify them with instructions. If Guideline collects the repayment through payroll deductions, the employee can expect to see post-tax loan deductions on their paystubs. Refer to the terms of your loan or contact Guideline to confirm your repayment method.
Guideline files Form 5500 on your company's behalf.