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Does payroll staff need to enter the 401(k) deduction information?

For a company with many employees, if payroll staff has to enter the 401(k) deduction information into a separate database manually in each payroll cycle, it will be a long time data entry process with potential errors for just moving the 401(k) payroll deduction to the company's 401(k) plan. To eliminate this retyping step, linking the 401(k) plan to the payroll system is the best practice. You can use an outsource payroll which provides the function or an in-house payroll software to generate the database in the format which the 401(k) administration supplier can process. It will be as easy as a "click" to send the deduction data to the supplier without any potential errors.


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