LAST REVIEWED Jun 01 2020 8 MIN READ
By Margarette Jung
Intuit Online Payroll (IOP) is a very common payroll among our small business client base, and we get asked a lot of questions about the various 401(k) options and tips for businesses who use (or want to use) this payroll system. We've answered a few of the most common questions here -- we hope you find this helpful!
A note: Intuit Online Payroll used to be called "PayCycle." PayCycle was a startup that created what is now Intuit Online Payroll and they were acquired by Intuit in 2009.
I'm using Intuit Online Payroll and I want to set up a new 401(k) plan. Any tips?
In theory, a 401(k) is a no-brainer: tax savings for both the company and your employees, everyone save for retirement, and you're showing your employees that you care about their long-term well-being. However, a lot of the realities of actually offering a plan can make it seem overwhelming. You may be worried about cost, IRS rules, the time it will take you to set it up, fielding questions from your employees, and (of course) reconciling it with your IOP setup.
There are several 401(k) options on the market, but because most of them focus on larger companies (more profitable for them), the 401(k) plans they do offer to small businesses are unfortunately fairly cumbersome and costly. Human Interest is a newer, more lightweight alternative that is designed specifically for small businesses, so you can take 401(k) administration off of your plate and get back to focusing on your day job.
There are several tasks, both for setup and ongoing administration that just really aren't worthwhile for a business owner or an HR/Operations person at a smaller company to focus on. Here's an example set of directions from Zenefits (a common HRIS) explaining how to set up 401(k) deduction codes in Intuit Online Payroll:
Here's how to set up pre-tax 401(k) or post-tax Roth 401(k) deduction codes in an Intuit Online or ManagePayroll account.
Log in to the payroll account and click the Setup tab.
Click +Add a New Deduction/Contribution under the list of existing deductions.
In the pop window:
Select "Retirement Plans" from the Category list.
Select "401(k)", "401(k) Catch-up", or "After-tax Roth 401(k) " (as appropriate) from the Type list.
For the Provider field, enter:
"401k" if the Type is "401(k)"
"401k CU" if the Type is "401(k) Catchup"
"Roth" if the Type is "After-tax Roth 401(k)"
Click OK. The deduction will be available across all employees in the account.
What are deductions/contributions? What is a catch-up contribution? How often will you have to do this? These are all questions that we're sure you'd rather not have to think about, but you still want to trust that this is all taken care of correctly.
Start early: it may take a few weeks or up to a few months to get a new plan set up because of the IRS paperwork that has to be filed (usually the 401(k) provider will take care of this for you).
Find a provider that's low cost for both employers and employees and is used to working with other businesses that use Intuit Online Payroll.
Make sure to ask about
Any questions about this process? Email us at [email protected] and we'd be happy to help.
Offer a competitive employee benefit
Sign up for an affordable and easy-to-manage 401(k) with Human Interest.
My company uses IOP and we already have a 401(k) but we want to switch providers. Any tips?
You should have two top priorities during this process:
Minimize the impact on your employees
Minimize the administrative work for the company during the transition
We recommend starting with this article: How to Change Your 401(k) Provider. Human Interest has a full sync with Intuit Online Payroll and we've had several IOP clients come to us from various other 401(k) providers so we're well versed in this process. Let us know if you have any questions!
I'm an accountant or outsourced HR provider and many of my clients use Intuit Online Payroll. Any tips on managing multiple accounts?
Some tips from Ryan Balfe of CubePros, who knows IOP backwards and forwards:
If you are an accounting professional that administers payroll for your clients, Intuit Online Payroll for Accountants (aka IOP4A) is a complete game changer and will allow you to support multiple payroll clients in minutes.
It provides a more convenient and effortless method of completing all of your clients’ payroll tasks under one roof (as opposed to going into each individual file, even for your QBO clients). Intuit also offers a tiered wholesale pricing structure within IOP4A that will allow you to capture significant margins as you grow your client base.
Since most accounting professionals administer payroll on Wednesdays (in order for direct deposit to be deposited into the employees’ accounts by Friday), IOP4A is a one-stop portal that will allow you to efficiently complete all of the payroll tasks for all of your clients in one session each week.
Ryan Balfe is the founder and CEO of Cubepros, which assists small business owners and startups with growing and scaling their businesses by utilizing cloud-based accounting technologies. He holds an MBA in Finance and is a Certified Quickbooks ProAdvisor. In 2016, Ryan was appointed to the Intuit Accountant Council.
Human Interest Intuit Online Payroll Clients
An example of a typical 401(k) client of ours that uses Intuit Online Payroll.
Bacon and Beer Classic Company Profile:
City: New York, New York Payroll: Intuit Online Payroll Participation Rate: 90% Employees: 11 Years in Business: 4 Industry: Event Planning
401(k) for other Intuit payroll systems
Looking for a 401(k) that works with QuickBooks Online? Click here: Human Interest + QuickBook Online 401(k) Integration
Margarette Jung is a former Head of Marketing at Human Interest.