Set up 401(k) benefits with Vestwell
About 401(k) benefits with Vestwell
Square Payroll partners with Vestwell to help you offer modern 401(k) retirement benefits to your employees. Vestwell handles onboarding, plan administration, compliance support, and investment management, so you can spend less time on administration and more time supporting your team. All plans of related entities must be administered by Vestwell in order to provide compliance testing.
Vestwell allows employees to make both traditional pre-tax 401(k) contributions as well as post-tax Roth 401(k) contributions. Employees can manage their savings anytime via mobile or desktop, with support available in 20 languages.
Employers can manage their plan through Vestwell's streamlined portal, which includes built-in administration, compliance support, and visibility into employee activity and plan health. You can contribute a percentage of an employee's gross pay or match an employee's contribution. Vestwell also supports profit sharing contributions. If you work with a financial advisor for your retirement plan, pricing may vary.
Before you begin
You can enroll with Vestwell directly from your Square Dashboard.
Vestwell is a separate partnership from the direct-to-employee benefits accessible to Square Payroll team members. Learn more about how to add employee benefits with Square Payroll.
Any contribution changes should be made directly through Vestwell. For support with your Vestwell plan, contact Vestwell at clientsuccess@vestwell.com or visit vestwell.com. To inquire about a new plan, email sales@vestwell.com or book a call with Vestwell.
After your plan transitions to Vestwell, you must notify Vestwell directly each time you run payroll so that a 401(k) contribution can be made. Visit the Vestwell Help Center for instructions on entering contributions via file upload. You can export a custom payroll report from Square Payroll to find your employees' contribution details for a given pay period.
Set up 401(k) benefits with Vestwell
Sign in to Square Dashboard and go to Staff > Payroll, then select Benefits.
Find the Retirement tile and select Get started.
Schedule a call with Vestwell to learn about available retirement plans and services.
Select Start setup to create your Vestwell account and enroll in a retirement plan.
After your Vestwell plan is active, Vestwell automatically notifies Square Payroll. You can define eligibility requirements in Vestwell based on age and length of employment. When employees meet those requirements, Vestwell emails them an invitation to enroll. Employees can manage their accounts at any time through the Vestwell portal.
Square Payroll creates and maintains employee contribution deductions based on the information in your Vestwell account. Automatic syncing applies to 401(k) and 403(b) plans but does not apply to 401(k) loan repayments.
To collect 401(k) loan repayments through payroll, create a post-tax deduction in Square Payroll.
State-sponsored retirement programs
Some states require employers to provide employees access to a state-sponsored retirement savings program. These programs are separate from your Vestwell 401(k) plan and include:
California: CalSavers
New York: New York Secure Choice
Colorado: Colorado Secure Savings
If you already offer a 401(k) plan through Vestwell, you are typically exempt from your state's retirement program mandate and you don't need to register with the state program. If you do not offer a 401(k) and your state requires participation, you can set up a Roth IRA benefit deduction in Square Payroll to facilitate employee contributions. Visit your state's Square Payroll employer tax guide for enrollment steps and deadlines.