In a blog post on Nov. 6, Gusto co-founder Tomer London wrote that technology-focused retirement plan provider Guideline is now a part of Gusto and announced the launch of Gusto 401(k), powered by Guideline. He said it’s now possible for small businesses and their teams to access payroll, HR, benefits, money management, and now retirement benefits all in one place.
“Guideline has already helped more than a million people save for their future. Now, as part of Gusto, we’re building on that impact and making it even easier for small businesses to help their employees plan for the life they want,” wrote London, who is also chief product officer at Gusto. “Small businesses can finally offer the kind of benefits that attract and retain the talent they rely on. Employees get a chance to build savings, strengthen their financial security, and feel confident about what’s next.”
He said when small businesses can offer the same quality benefits as large corporations, they level the playing field and strengthen the entire small business economy.
“We want to eliminate the friction that’s kept retirement benefits out of reach for millions of small business employees—benefits that make a real difference in employees’ lives,” London wrote. “People are 15 times more likely to save for retirement when they have access to a workplace plan. And for employers, offering retirement benefits helps businesses attract and retain talent.
“And with at least 20 states already enacting legislation requiring employers to either offer their own retirement plans or enroll employees in a state-issued auto-IRA, the stakes have never been higher for small businesses to be compliant, competitive, and avoid costly penalties,” he added.
Key features of Gusto 401(k), powered by Guideline, include:
- One platform for everything: Business owners will be able to set up all their benefits in one place, employees will onboard and update their benefits using a single app, and compliance requirements, taxes, and payments will be easily managed in Gusto—including automated 401(k) tax credit forms that help businesses save time and money. Employers can manage their team’s 401(k) directly within Gusto, right alongside payroll and other benefits.
- Automatic sync with payroll: Payroll deductions are calculated accurately and contributions sync automatically.
- Faster, easier setup: Onboarding a retirement plan used to take weeks. Now, setup can simply be completed using your existing payroll data. If you can run payroll, you can offer a 401(k).
- A better employee experience: Your team can manage their retirement savings right alongside their other benefits—health insurance, health savings accounts, commuter perks—all within Gusto. It’s the complete picture of their compensation and benefits in one place.
“By bringing retirement into Gusto—the same trusted platform that handles payroll, HR, and benefits—we’re helping more people take care of their teams, which means more people can save for retirement, creating better outcomes for themselves, their families, their communities, and the small business economy,” London wrote.
More information about Gusto 401(k), powered by Guideline, can be found here.
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Tags: 401(k), Guideline, Gusto, Human Resources, Payroll, retirement plans, Technology
