Payroll 401(k) Benefits
Square Payroll partners with Guideline so that you can offer 401(k) retirement benefits to your employees. It’s easy to setup, works in the background when you process payroll, and comes with no transaction fees..
How it Works
Employers can enroll in Guideline directly from the Benefits tab of their Payroll dashboard and seamlessly offer retirement benefits. Guideline makes 401(k) plans easy by handling the onboarding of your employees, administration, compliance testing*, and investment management. Guideline allows employees to make both traditional pre-tax 401(k) contributions as well as post-tax Roth 401(k) contributions. When you process payroll through Square, contributions and deductions sync automatically each pay run.
Guideline is a separate partnership from the direct-to-employee benefits that are accessible to payroll team members through the Square Team App. Learn more about direct-to-employee benefits in our Support Center.
*All plans of related entities must be administered by Guideline in order to provide compliance testing.
Sign Up with Guideline
Visit the Benefits tab of your Payroll dashboard.
Click Get Started on the Retirement tile.
Click Start Setup. Square Payroll syncs your business information with Guideline.
Enroll in the plan and decide how much (if at all) to contribute.
Eligible employees will receive an invitation to enroll in the 401(k) account on their online Square Payroll Employee Dashboard and a welcome email from Guideline.
Run Payroll with a Retirement Plan
Once your employees have enrolled in the retirement plan, contributions and deductions are automated each pay period. To process payroll
Log in to Staff > Payroll in your online Square Dashboard > click Pay Employees as usual.
After entering employee hours and any additional pay, click Continue.
Employee deductions and employer contributions will appear on the Adjustments screen. You are able to edit the employee deduction if needed. Note: Changes to the employer contribution will need to be made directly in Guideline.
Click Continue to proceed with processing payroll.
Guideline will debit for the full 401(k) amount (company contribution and employee deferral) the business day after payroll is processed.
FAQ
How much does Guideline cost?
Guideline’s plans start at $89/mo + $8 per active participant per month.
The cost for participants starts at 0.15% per year*, which comes out to $1.25 a month for an account with a $10,000 balance**.
*An assumed annual account fee of 0.15% is applied to assets under management and is deducted on a monthly basis. It’s calculated at 1/12 of the annual stated rate (0.15%) based on the account balance on the last day of each month. Alternative account fee pricing is available, ranging from 0.15% to 0.35% Contact Sales at hello@guideline.com to learn more about exclusive pricing options available in Enterprise tier. See our Form ADV 2A Brochure for more information regarding fees.
**This information is for illustrative purposes only, and is not intended to be construed as investment or tax advice or as an assurance or guarantee of future performance. Investing involves risk, and investments may lose value. Information shown here assumes a static balance of $10,000 per month, an assumed annual account fee of 0.15% on assets under management (calculated and deducted on a monthly basis at 1/12 of the annual stated rate (0.15%) based on the month-end account balance) and does not account for common factors that affect the value of your account balance over time such as gains, losses, distributions, additional contributions, etc. The fee presented does not include other fees that a 401(k) participant may incur, including, but not limited to, fees charged by the mutual funds or the monthly maintenance fee to participants who end employment. Alternative account fee pricing is available, ranging from 0.15% to 0.35%. Contact Sales at hello@guideline.com to learn more about exclusive pricing options available in Enterprise tier. See our Form ADV 2A Brochure for more information regarding fees.
What are company contributions?
Employers can make contributions through Guideline’s easy to use employer dashboard. Contributions are calculated pre-tax. You can contribute a percentage of an employee’s gross pay or match an employee’s contribution. Guideline also supports profit sharing contributions.
Who is eligible for a 401(k)?
When an employer sets up a retirement plan, you can set eligibility criteria in Guideline based on minimum age and length of tenure. Once those criteria are met, the employee becomes eligible and is invited by Guideline to enroll.
How can I update employer and employee contributions?
Any changes to contributions should be made in Guideline directly. Any updates will be processed on the next pay run.
How can I switch 401(k) plans to Guideline?
If you already have a 401(k) and want to switch to Guideline, you will need to reach out to the Guideline Sales team directly at square@guideline.com or request a call through their scheduling page.
How do I contact Guideline?
For more information, please contact Guideline at 888-228-3491 or email hello@guideline.com.