Paychex Flex

Since our platform has an integration with your payroll provider, we can take a lot of work off your plate regarding the processing of your payroll files through automation.

Paychex Flex offers a Payroll Concierge level of integration

This guide will help you set up your integration as well as help you understand your specific responsibilities for the proper administration and submission of payroll files. 

  1. How Does Payroll Concierge Work?
  2. Why Do I Need To Grant Access To My Payroll Systems for Payroll Concierge? 

  3. Are There Any Reasons Why My Plan Might Not Be Eligible for an Integration? 
  4. How Do I Initiate My Payroll Concierge?
  5. What Are My Responsibilities? 
  6. What Payroll Activities Does Vestwell Handle for Me?
  7. Will Paychex Flex Charge Me Any Fees to Set Up and/or Maintain My Payroll Integration? 
  8. How Do I Disconnect My Integration?

How Does Payroll Concierge Work?

With this type of support, our team of payroll experts accesses your payroll system so we can transfer your payroll files and plan-related data between Vestwell and your payroll provider. 

Please note that the Paychex Flex integration will only allow employees to elect deferrals in percentages; dollar-amount deferrals will not be an option.

Why Do I Need To Grant Access To My Payroll Systems for Payroll Concierge? 

To provide our Payroll Concierge services, we need the ability to view and download information relating to your plan from Paychex Flex. These activities require Administrator or Accountant-level permissions.

We realize that you are trusting us with some of your most sensitive employee information by granting us this level of access. We are committed to data security and privacy; you can read about our internal processes and controls in our Privacy Policy and security area of our website.

Are There Any Reasons Why My Plan Might Not Be Eligible for an Integration? 

There are some plan design features that currently prohibit the use of payroll integration, including:

  • 403b plans will not be supported by this integration. 
  • Plans that have multiple pay groups.
  • Plans that have multiple EINs.
  • Plans that have multiple log-ins into their payroll system.
  • Plans that do not have an established recurring pay schedule setup in both Vestwell and the payroll system.
  • Plans that do not use the same payroll provider for all pay group(s).
  • Plans that have limitations preventing each paygroup from being integrated. 
  • Eligibility rules that exclude certain classes of employees, types of compensation, or certain types of hours worked.
  • Plans with per pay period non-mandatory employer contributions.
  • Plans that allow after-tax contributions (only be available if your plan uses a Third Party Administrator). Note: After-tax and Roth contributions are not the same; please see our article “Participant Contribution Types: Differences between Pre-tax, Roth, and After-tax.”

How Do I Initiate Payroll Concierge?

1. Send your Paychex Flex Company ID to your Vestwell representative.

Vestwell will use this to request access to your Paychex Flex account.
Your ID can be found below your company name within your Paychex portal or by contacting your Paychex representative.

2. Copy and paste the text below into an email & send it to your Paychex Flex Representative to set up the appropriate payroll codes.

Please set up the following deduction and earning codes for my new 401k plan:

  • 401(k) EE PreTax (allow catch-up contributions)
  • Component Type: 401(k) EE PreTax
  • Roth 401(k) EE (allow catch-up contributions)
  • Component Type: Roth 401(k) EE
  • 401(k) ER (if applicable)
  • 401(k) Loan Payment (if applicable)
  • Component Type: 401(k) Loan Payment

APPROVAL: After Vestwell requests access to your Paychex Flex account, you can approve it by logging into your Paychex Flex account as a Super Admin at www.paychexflex.com.

1. On the Dashboard, under Tasks, click View All. Don't see it? Click Manage Tiles.

2. Under Tasks, click Approval Request & choose the request.
3. Select Approve and Assign Role.
Note: Vestwell will only have access if a role is assigned.
4. Click No role assigned, then select SUPER ADMIN.
5. Click Save.

*To confirm that Vestwell has a role, please select User Access on the left and select Jonathan Ferrara. The Super Admin role you selected should appear next to their username. Who is Jonathan Ferrara?

If you have any trouble locating the request in your Paychex account, don't hesitate to get in touch with your Paychex Representative.

If your plan is a conversion after your last payroll before Vestwell, ensure saver deferrals and employer contributions are cleared from your payroll system.

What Are My Responsibilities? 

Our ability to successfully process your payroll files and administer your plan depends on you! It is your responsibility to:

Payroll Codes

  • Work with your payroll representative to set & maintain payroll codes within your payroll system
      • 401k EE PreTax (allow catch-up contributions)
      • Roth 401k EE (allow catch-up contributions)
      • 401k ER (if applicable)
      • 401k Loan Payment (if applicable)

Loans

  • Set up and maintain retirement loans within your payroll system. 

Discretionary and/or Profit-Sharing Contributions 

  • Set up and maintain non-mandatory company contributions within your payroll system, and upload these contributions through your Vestwell portal using an off-cycle upload. Learn how to submit an off-cycle contribution here

Mandatory Employer Contributions

  • Set up and maintain mandatory employer contributions that are on a frequency other than on a per pay period basis using an Off-cycle upload. Learn more about off-cycle contributions here.

Pay Groups 

  • Make sure any pay groups in your payroll system are also set up at Vestwell and vice versa. To edit a pay group name or set up new pay groups, please see How to add or change a pay group in your Vestwell account.
  • The number of pay groups or companies in your payroll system may affect your plan’s eligibility to use payroll concierge.

Saver Status Changes - Payroll System

  • Make updates in your payroll system when savers are hired, terminated, or re-hired. Include a specific date when making these status changes in your payroll system.

Saver Personal Information

  • Maintain complete, accurate, and up-to-date personal information within your payroll system - including date of birth, social security number, and email address. 

Off-cycle payroll submissions

  • Report any off-cycle payroll run through your payroll system to your Vestwell representative. These will not be uploaded automatically through the integration.

Pay Frequency/Schedule Changes

  • Report any pay frequency or pay schedule changes to your Vestwell representative to ensure there is no delay in processing your payroll files upon making this change in your payroll system.

Review Payroll Data

  • We rely on you to provide us with correct, updated, and complete data about your savers, regardless of whether we receive that data directly from you or your payroll provider. Regular audits and spot checks of the data provided will help you quickly identify and rectify any discrepancies.

What Payroll Activities Does Vestwell Handle for Me?

Saver Deferrals - First Payroll

  • Four business days before your first pay date with Vestwell, we will use the saver deferral rates in the Vestwell portal to set saver elections in your payroll system. To guarantee saver deferral rates have been updated in your payroll system, do not run payroll four business days before your scheduled payment date.

Saver Deferral Updates

  • Ongoing deferral changes made in the Vestwell portal by eligible savers will be set in your payroll system within two business days.  
  • We will communicate any deferral update requests to your payroll system. Savers may not see this reflected in their next few paychecks, as it could take time for this update to be reflected.
  • If your plan has an auto-enrollment feature, the same guidelines above apply. Read more about auto-enrollment here.

Saver Status Changes - Vestwell Portal

  • When you add, rehire, or terminate savers in your payroll system, the changes will be reflected in the Vestwell portal one business day after the next pay date.

Processing Contributions

  • Process saver deferrals and employer contributions which are maintained by the integration shortly after you run payroll in your payroll system.

Will Paychex Flex Charge Me Any Fees to Set Up and/or Maintain My Payroll Integration? 

No, Paychex Flex does not charge any fees at this time. 

How Do I Disconnect My Integration?

If you change payroll providers, it is your responsibility to inform us so that we can disconnect your integration and assess whether integration with a different payroll provider is available. Please reach out to your Vestwell Representative, and we will assist you.

If your plan has been amended or if you are considering an amendment to your original plan documents, please inform your Vestwell Representative to understand what actions on your part will be required to submit and process your payroll files correctly.