Retirement Payroll accuracy and efficiency are vital components in the already complicated retirement plan administration and recordkeeping process. According to the 2022 EY survey report, the average payroll accuracy rate of a company is 80.15%.
This number might sound reasonable and realistic, but you cannot say the same thing about the cost incurred because of these inaccuracies. Each payroll error costs the company $291, directly and indirectly, signifying the dire need for an efficient payroll system that ensures accuracy, efficiency, and compliance.
This is where cutting-edge solutions like CORE Payroll, an integral component of Congruent’s CORE retirement recordkeeping platform, plays a significant role. It improves the accuracy, efficiency, and compliance of retirement plan administration.
The Problem with Retirement Payroll Processing
Traditionally, Retirement Payroll systems operate in silos, independently from the HR and financial functions. This led to inefficiencies, errors, inconsistencies, and increased compliance risks. Moreover, the constantly evolving regulations multiply this complexity.
Here are some of the key challenges faced by plan administrators and sponsors with the traditional payroll systems:
- Data complexity: Handling data from multiple sponsors with unique file formats is time-consuming and error-prone.
- Tight deadlines: The deadline pressure increases the risk of inaccuracies.
- Manual processes: Manual data entry and huge paperwork hurdle the process with inefficiencies and errors.
- Errors in consequent processes: Payroll mistakes will be reflected and carried forward in subsequent retirement plan administration processes.
- Coordination challenges: Multiple rounds of coordination with the plan sponsors are required to correct errors and inconsistencies in the data provided.
Apart from direct cost implications and inefficiencies, there are indirect impacts, such as the participant experience and engagement.
CORE Payroll: The Comprehensive Solution
CORE Payroll is an integrated component of Congruent’s retirement plan administration platform, the CORE. From using AI and ML technologies to automating essential functions, it addresses critical challenges plan administrators face.
Key Features of CORE Payroll:
- Self-service capabilities: Sponsors can now make corrections directly without needing to depend on plan administrators. This eliminates iterations and makes the process faster.
- Automated processes: Automating eligibility checks and contribution calculations, such as match and non-elective calculations, ensures accuracy and efficiency.
- Centralized data management: Offers a unified platform for managing diverse data sources from various sponsors in multiple formats, reducing the need for reconciliation.
- Real-time insights: The intuitive, all-in-one dashboard provides up-to-date information on file upload status and errors.
- Improved compliance: Built-in checks and balances prevent potential errors and ensure compliance with regulatory requirements.
- Data-driven decision-making: Advanced reporting and analytical tools support strategic decision-making based on solid data.
- Flexible payroll funding options: Multiple payment methods and funding options ensure that payment processes are not delayed.
With these extensive features, CORE Payroll offers a comprehensive solution that solves all the challenges associated with traditional payroll processing systems. Its integration with the other modules of retirement plan administration reduces the chances of errors and inconsistencies and improves efficiency.
Efficient Retirement Plan Administration
CORE Payroll offers a considerable advantage by integrating payroll processing with retirement plan administration. It streamlines contributions, ensures accuracy, and simplifies compliance, ultimately enhancing the overall participant experience.
Moreover, payroll and plan administration integration enable extensive data analysis. Sponsors and administrators can gain valuable insights into employee demographics, salary trends, and participation rates in retirement plans. This data-driven approach helps in making informed decisions about optimizing retirement plan options.
CORE Payroll: The Future of Retirement Payroll Processing
Integration and automation are the future of retirement payroll processing. CORE Payroll offers comprehensive solutions to meet the evolving needs of modern businesses. It streamlines the payroll process, ensuring compliance and resulting in exceptional employee experiences.
How is CORE Payroll Benefiting Recordkeepers, Plan Providers & TPAs?
- 40% reduction in operational costs
- Payroll processing in minutes
- Improved customer experience for sponsors
- Increased customer retention
- Cloud-native architecture enables scalability
Streamline Retirement Planning with CORE Payroll
CORE Payroll automates routine and complex processes, improves data accuracy, and offers compliant reporting. This frees up time for plan administrators to focus on strategic tasks rather than these administrative processes.
Don’t let payroll challenges hinder your retirement plan administration. With CORE, you can streamline your payroll, optimize your retirement plan administration, and improve the efficiency of your workforce.
Contact Congruent experts to learn how CORE Payroll can streamline your retirement plan recordkeeping.
Also, watch how CORE Payroll helps Plan Administrators and Plan Sponsors on our YouTube channel.
