The typical enterprise combines multiple technology platforms and programs to deliver payroll and retirement plan solutions to its employees. The point at which payroll and a retirement plan intersect is a breeding ground for fiduciary failures. Payroll deficiencies can cause substantial financial penalties and reputational harm for enterprises that sponsor 401(k) and 403(b) type retirement plans. The mix of systems and vendors often pushes managers to operate and monitor programs that lack integration leading to confusion, frustration, and errors.
The fragmentation of systems is the primary reason payroll deficiencies top the list of fiduciary duty violations with the IRS and U.S. Department of Labor. The challenge of reconciling payroll and retirement plans adds stress to the management culture and can negatively affect an enterprise’s budget. Fiduciary committees and human resources executives have an opportunity to meet the challenge without upsetting their operational complex.
Listen to our podcast and learn from a Roland|Criss study of the relationship between payroll deficiencies and fiduciary violations. You’ll find the six categories of weaknesses we encountered to be eye-opening. We’ll cover some perspectives on the study’s findings and provide some guidance on curing the defects inherent in many payroll operations to help you and your team be more successful.
About our host
Ronald E. Hagan is chairman of Roland|Criss’ Risk Standards Committee. Ron has over 25 years of experience helping clients examine and improve their risk management practices for employee benefit plans qualified under the Employee Retirement Income Security Act of 1974. He is the engaging host of Roland|Criss’ weekly podcast and quarterly webinar series.
