If you need to add a new employee, update an existing employee, or notify us of termination, you do not need to take any separate actions. As long as you are always sending us up-to-date information in your contribution submissions, any updates will be automatically processed along with the contributions. Here’s what you need to keep in mind:
Adding Employees
If you have a new employee, confirm they are on the file you upload on their first pay date.
Updating Employees
If you need to change an employee’s demographic information, confirm the updated info is included in the file you upload.
Employee Termination
If you need to notify us of an employee's termination, confirm that the employee and their date of termination are included in the file. After that, you can remove them from your file, but we need to receive their date of termination at least once in order to process the termination.
Removing Employees
To comply with ERISA, the federal law regulating tax-qualified retirement plans, all records related to the plan must be retained for six years after the plan ends. This includes information about the plan, such as:
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- Participating employees
- Benefits paid
- Claims made under the plan
- Distributions
- Vesting
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Therefore, our platform does not allow end users to delete any records of participating employees. Plan sponsors should adjust their internal recordkeeping systems to ensure compliance with federal law.
If you have any questions, please reach out to everyday401k.success@vestwell.com.