Automated Data Extraction Benefits
- Automated data extraction from enterprise reports
- Simple data cleansing, joining and preparation
- Spending less time filing 5500s or preparing for an audit
Accelerate 401k Compliance Tasks
- Quickly and easily meet 401k compliance requirements
- Mitigate risk of financial penalties for late filings
- Avoid supplemental staffing costs for manual data entry and preparation
- HR can spend more time focused on servicing its employees
The Employee Retirement Income Security Act (ERISA) requires administrators and plan sponsors of 401k plans with 100 or more participants to file a form 5500 annually with the Department of Labor and the IRS, detailing each employee’s contributions. In addition, these organizations are audited annually to ensure that paycheck deductions are submitted to 401k plans within a reasonable time period, to protect both participants and beneficiaries. Non-compliance, or missed deadlines for filing the 5500, amounts to substantial penalties for companies.
During the initial annual audit, it’s common practice for most auditing firms to request information that goes back between 5 and 7 years. This requires pulling data from disparate sources, including PDFs, and rekeying it into the proper format. This is not only extremely time consuming, but if done manually, the process is prone to human error.
In order to comply, HR department’s must provide the amount of payment and the remittance date to the 401k provider for each of its employees for 24 pay periods, dating back five years. This information often exists in large PDFs and Excel files—name, amount, remit date, etc.
Datawatch Monarch empowers HR teams to quickly capture the data they need—in minutes without extensive training or IT resources required. With Datawatch, HR can focus on servicing its employees versus its compliance requirements, saving weeks of man-hour time and avoiding costly penalties.