Paylocity

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.

Paylocity offers a 360° 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 My Integration Work?
2. Are There Any Reasons Why My Plan Might Not Be Eligible for an Integration? 
3. How Do I Initiate My Integration Setup?
4. What Are My Responsibilities?
5. What Does Vestwell Handle for Me If My Plan Has an Active Payroll Integration?
6. Will Paylocity Charge Me Fees to Set Up and/or Maintain My Payroll Integration? 
7. How Do I Disconnect My Integration?

How Does My Integration Work?

Your integration is a 360° automated integration. This is a two-way integration in which Vestwell will automatically receive certain information about your plan and participants from your payroll system, process employee and employer contributions to the plan, and automatically send your employees’ selected deferral elections from their Vestwell portal to your payroll provider.

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:

• 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 pay group 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 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 My Integration Setup?

1. In your Paylocity portal, Navigate to "HR & Payroll" and then "Marketplace."
2. Search for “Vestwell” in the name field.
3. Click Begin Integration to access, complete, and sign the integration form.
4. View the alert window. Any important information and fees will be reflected here. If you wish to proceed, select “Acknowledge associated fees for this service” and continue.
5. Enter the following information. Note: You must complete the following information exactly as follows, or your request will be rejected by Paylocity, and your integration will be delayed.
   • Client Information: Complete ALL fields
   • Vendor Name: Vestwell
   • Plan ID(s)/Policy Numbers(s): Paylocity company ID (this is your Paylocity company code and NOT your Vestwell plan number)
   • Vendor Contact Name: Ashley Lettieri
   • Effective Date: Anticipated first payroll date 
   • Vendor Contact Email: payrollintegrations@vestwell.com
   • Vendor Contact Phone: (917) 979-5358
   • TPA Information: Leave all fields blank; even if you are working with a TPA, please leave this section blank
   • Broker/Advisor Information: Leave all fields blank; even if you are working with an advisor, please leave this section blank
6. Select the Electronic Records and Signature Disclosure link to read the disclosure. If you are ready, proceed to submit.
7. Sign the document and click Finish to submit the request to Paylocity. You will see the notification that your request has been successfully submitted and a reference number.

If you have recently switched payroll providers to Paylocity and your first payroll run with Paylocity is also your first payroll with Vestwell, your integration will not be active for the first payroll date. You may be required to manually input your deferral rates in your Paylocity system and submit your first payroll manually to Vestwell. For more information, please reach out to your Vestwell representative. 

Note: Until the integration is activated, contribution uploads into the Vestwell portal will be required until our team has notified you that the integration can begin.

What Are My Responsibilities?

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

• Payroll Codes
  • The default deduction codes are set up for you by Paylocity when you are Onboarding to the payroll system. If you have created & are using custom deduction codes with your Paylocity Account Manager, please communicate these to the Paylocity team during integration setup.
  • This includes the initial set up of any employer contribution codes which will be funded on a per-pay period basis.
  • It is important that these payroll codes do not change once the integration setup is completed.
• Loans
  • Set up and maintain retirement loans within your payroll system. 
• Discretionary and/or Profit-Sharing Contributions 
  • Set up and maintain non-mandatory employer contributions in your payroll system.
  • Submit non-mandatory employer contributions through your Vestwell portal using an off-cycle upload. Learn how to submit an off-cycle contribution here. 
• Mandatory Employer Contributions
  • Maintain & submit 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. These pay groups in the Vestwell system should be named according to your Paylocity company codes.
  • 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 before your first pay date.
  • If you are removing a pay group from your payroll system, please reach out to clientsuccess@vestwell.com.
  • The number of pay groups or companies in your payroll system may affect your plan’s integration eligibility.
• 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. 
• 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.
• Negative Contributions/Corrections
  • Negative contributions or corrections are not able to be processed through the integration. For assistance with negative contributions or corrections, please contact our Employer Services team by emailing clientsuccess@vestwell.com.
• Review Payroll Data
  • We rely on you to provide us with correct, updated, and complete data about your employees 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. 
  • We recommend ensuring accuracy of the Plan Contact Info on your Vestwell employer portal as an email will be sent to notify you of any discrepancies. Visit Updating your Company Information to keep this up to date!

What Does Vestwell Handle for Me If My Plan Has an Active Payroll Integration?

• Saver Deferrals - First Payroll
  • Four business days prior to your first pay date with Vestwell, we will use the employee deferral rates in the Vestwell portal to set employee elections in your payroll system. To guarantee saver deferral rates have been updated in your payroll system, do not run payroll before 4 business days before your scheduled pay date.
• Saver Deferral Updates
  • Ongoing deferral changes made in the Vestwell portal by eligible employees will be communicated to your payroll system. It may take a few pay periods for this to be reflected in Saver paychecks. 
  • We recommend that you opt in to auto-approval by contacting your Paylocity representative. If this is not turned on, the Company Admin will receive an email from Paylocity for each deduction change sent by Vestwell.  
  • If your plan has an auto-enrollment feature, the same guidelines above apply. Read more about auto-enrollment.
• Saver Status Changes - Vestwell Portal
  • When you add, rehire or terminate employees 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. 
  • If you process your payroll early, Vestwell will never process the contributions file before the pay date. 
  • Off-cycle contributions processed in your payroll system will come through the integration & reflect in your employer portal after the pay date.

Will Paylocity Charge Me Fees to Set Up and/or Maintain My Payroll Integration?

Your payroll provider may charge fees in conjunction with the integration. Please check with your Paylocity representative for more specific details. Vestwell will not charge you to facilitate this integration.

What If I Amend My Vestwell Plan? 

If your plan has been amended or if you are considering an amendment to your original plan documents, you are responsible for informing your payroll provider of the updates.

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.